Nifty bullish, could touch 23,800: Analysts

bullish market trend, with Nifty expected to rise to 23,400–23,800 range, according to technical analysts. Stocks like ICICI Bank, SBI, Mphasis, Reliance Industries, Oberoi Realty, DLF, JSW Steel, Tata Steel, PFC, Bharti Airtel, and BHEL have formed bullish patterns, presenting potential short-term trading opportunities for investors.

RAJESH PALVIYA HEAD — TECHNICAL DERIVATIVES, AXIS SECURITIES

Where is Nifty heading this week? On weekly chart, the index has formed a long bullish candle. The FII long-short ratio stands at 0.47, indicating short-covering by FIIs. The index has closed above the declining channel from its all-time high of 26,277 on weekly chart, signaling the potential for further upward movement towards 23,800 and 24,000. On the downside, support levels are placed at 23,000 and 22,800. A breakout above 23,450 could trigger new buying, driving the index towards 23,800- 24,000 range. Conversely, a drop below 23,000 may bring selling pressure, potentially pulling the index down to 22,800-22,600 range.
What should investors do? Investors can focus on stocks like BPCL, NTPC, Tata Power, Bajaj Finance, HAL, L&T, Indigo, and ICICI Bank. Traders can initiate a Bull Call Spread strategy of March 27 weekly expiry – buying one lot of 23,350 Calls at Rs 141 and simultaneously selling one lot of 23,600 Calls at Rs 41. Net outflow or maximum loss will be restricted at Rs 7,500. Nifty on expiry if it closes above 23,450, the strategy will start making a profit; however, as the risk is limited, the profit is also