Nifty could hit 20,600 on crossing 20,400: Analysts
Nifty could touch 20,600 if it manages to breach the 20,400 level. Analysts, however, said upsides would be tougher to come after the recent run-up and crucial support is at 19,900.
Tata Steel, Grasim, Tech Mahindra, Alkem Labs, Tata Consumer, and Union Bank could gain in the short term, while analysts anticipate continued weakness in Asian Paints, Hindustan Unilever, and BPCL.
JATIN GEDIATECHNICAL RESEARCH ANALYST, SHAREKHAN
Where is Nifty headed?Nifty has reached the zone of 20,200-20,300, where multiple resistance in the form of the weekly upper Bollinger band (20,279) and the 138.2% Fibonacci retracement level (20,286) of the fall from 19,992 – 19,223 are placed, which can attract some profit booking. In case of a dip, 19,900-19,850 shall act as a crucial support zone and on the upside, 20,200-20,300 shall be an immediate hurdle from a short-term perspective.
A decisive close above 20,300 can lead to an extension of the current up-move till 20,530-20,730, an equality target and a Fibonacci extension target, respectively, as per the Elliott wave principle.
What should investors do? The high-flying midand small-cap index closed in the red, and both the indices are due for some consolidation. We can expect stock-specific action during the week.
Stocks like Tata Steel, Grasim and Tech Mahindra look positive from a shortterm perspective, while we can expect weakness in Asian Paints, Hindustan Unilever and BPCL to continue.
APURVA SHETHHEAD OF MARKET PERSPECTIVES & RESEARCH, SAMCO SECS
Where is Nifty headed?Nifty has broken out of its previous highs and the psychological mark 20,000. The index has been moving comfortably in an upward-sloping channel since the start of this month.
