HUDCO among top 3 stock ideas for the week: Kunal Shah
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, lists out three ideas for the week ahead — HUDCO, City Union Bank and Deepak Nitrite.
Edited excerpts from a chat:
What is your outlook for the May series and which levels should one watch out for given the trade set-up appears to be favouring bulls?
The current market sentiment reflects strong bullish momentum, with aggressive buying seen on dips, indicating dominant buyer activity. For Nifty, the key level to monitor is 22300, which has now transformed into a crucial support level on declines. A breach below this level on a closing basis would invalidate the uptrend. Meanwhile, the Bank Nifty has experienced mixed results this earnings season, with the fate of the index potentially hinging on ICICI Bank's results. The index finds support at 48000, where the highest open interest is also concentrated on the put side, reinforcing the bullish outlook as long as this level is sustained.
May has been a positive month for Nifty 7 out of 10 times in the last 10 years. Do you think this one will be tougher for bulls as we are already near peaks and FIIs have lightened long positions.
The recent aggressive selling by Foreign Institutional Investors (FIIs) has been effectively absorbed by domestic liquidity, a trend observed over the past few years and expected to persist. With ongoing elections, May could pose challenges if previously mentioned support levels are breached. The first half of May is anticipated to maintain the existing uptrend, while the
