Nifty faces stiff resistance at 19,500, likely to weaken further

economictimes.indiatimes.com:

Nifty Call options are at 19,500, which suggests the index has stiff resistance at this level. Stocks like Bajaj Finance, Hero Moto, IndusInd Bank, AB Capital, Bandhan Bank, Oberoi Realty and Shriram Finance can remain under pressure. Investors can start accumulating BPCL and ITC in the fall, said analysts.JATIN GEDIATECHNICAL RESEARCH ANALYST, SHAREKHANWhere is Nifty headed this week?Chart patterns suggest a zone of 19,570-19,600 for Nifty will act as a strong resistance.

Until the index sustains above 19,600, it will likely drift towards 19,250; and below that, potentially towards 19,100. On the flip side, if the index decisively closes above 19,600, we can expect a sharp rebound that could retest the recent highs of 19,992. However, the probability appears low.

Options data suggest a broader trading range of 19,250 -19,600.What should investors do?Stocks like Bajaj Finance, Hero Motocorp, IndusInd Bank, AB Capital, Bandhan Bank, Oberoi Realty and Shriram Finance can remain under pressure. Weakness in stocks like Coal India, NTPC, PFC and Indian Hotels should be used as a buying opportunity. Sell DLF August futures at Rs 484.35 with a stop loss of Rs 491 for a target of Rs 463.

Sell Piramal Enterprises August futures at Rs 1,015 with a stop loss of Rs 1,037 for a target of Rs 935. Buy Indian Hotels August futures at Rs 387 with a stop loss of Rs 370 for a target of Rs 423.MEHUL KOTHARIAVP -TECHNICAL RESEARCH, ANAND RATHI SHARES & STOCK BROKERSWhere is Nifty headed this week?FIIs’ long-short ratio in index futures has cooled down to 40%; reflecting this, Nifty has come down to almost 19,400. We now witness a lower-high and lower-low formation in Nifty.