Nifty bullish, may touch 22400 soon: Analysts
Nifty, indicating a potential test of the 22,400 level soon. However, technical analysts note that the ascent might be gradual due to the underperformance of bank shares. Infosys, Cipla, Aditya Birla Capital, LIC Housing, Aptus, Bharti Airtel, Birla Soft, Canara Bank, IOC, PNB, RIL, Tata Consumer, Tech Mahindra, and Wipro have positive setups.
PRITESH MEHTA EXECUTIVE VICE PRESIDENT-INSTITUTIONAL RESEARCH, YES SECURIES
Where is Nifty headed? Following Friday’s rally, Nifty has confirmed a move above the three-digit Gann number of 218(00) and a bullish ABC break on the point and figure (P&F) chart, implying the end of the recent consolidation phase.
Fresh momentum and participation of index biggies add credence to Friday’s breakout. The vertical count suggests an extension towards the 22,400 zone. Bank Nifty is a cause of concern as its underperformance persists.
What should investors do? Despite Friday’s 5% uptick in the Nifty IT index, it is still trading below the January 2022 peak. Meanwhile, our customised Midcap IT index has surpassed a peak of ’21, highlighting strength. Continuous bullish patterns in LTI Mindtree and L&T Technology suggest a further rally of 10-12%.
Similarly, our customised housing finance companies index has broken above the 2021 peak, signalling a continuation of the recent momentum. Within the space, LIC Housing Finance and Aptus are expected to outperform from this space.
AJIT MISHRA SVP-RESEARCH, RELIGARE BROKING
Where is Nifty headed? Nifty looks set to test 22,150 and then 22,500. However, the pace of the rise could be gradual due to the prevailing underperformance of banks.
