It’s buy-the-dips time; Nifty support at 22,300
support for Nifty is around 22,300, followed by 22,100-22,000; and any dips should be seen as a buying opportunity as the index could attempt to rally towards new record highs soon, according to technical analysts. Stocks such as M&M, TVS Motors, Coal India, Grasim, ACC, Gail, Concor, National Aluminium, MTAR Tech, APL Apollo, Exide, Aurobindo Pharma and HEG could witness strong buying interest, analysts said.
SUDEEP SHAH HEAD — TECHNICAL & DERIVATIVE RESEARCH, SBI SECURITIES
Where is Nifty headed this week? Amid high volatility last week, indices retested the support zone at 21,825, which was closer to the previous three swing lows of February, March and April 2024, and after that, witnessed a strong rebound leading to a close above 22,500 with a gain of 2%. Chart patterns suggest that a 20-day exponential moving average of 22,200-22,250 will act as crucial support going forward, and a possibility of consolidation between the 22,200 and 22,800 zones looks more likely. Above 22,800, a fresh move up to 23,100-23,150 can be witnessed. Weekly options data coupled with India VIX sustaining at higher levels suggests possible consolidation for Nifty within the 22,200-22,800 range for the week.
What should Investors do? While the short-term bias in Nifty is positive, we feel stock-specific action could continue in quality mid-caps and small-caps. We expect large-cap names from select private as well as power, capital goods, metals, defence, CPSE, as well auto to outperform going ahead. Positive trade setup is visible in
