Nifty towards 25,500–26,000 in the short term, says Rupak De, Senior Technical Analyst, LKP Securities. He recommends buying TCS, DLF, and LTIMindtree for the week. Edited excerpts:
The September series started on a positive note as the index reached an all-time high closing, driven by improved optimism around Indian equities. On the daily timeframe, the index has given a swing high breakout, indicating a rise in market sentiment. The strength is likely to continue as long as the index remains above 25,000. However, a drop below 25,000 could trigger a significant correction. On the higher side, the current optimism might propel the index towards 25,500–26,000 in the short term.
Among the private players and PSUs in the banking sector, the former is attracting significant interest from buyers. After weeks of underperformance, it appears that private banks are ready to take the driver's seat, supported by a better risk-reward ratio.