Nifty on a strong base, to maintain bullish trend: Analysts
Nifty has established a strong base around 21,450 levels, and a sustained position above this level is likely to favour the bullish trends, according to analysts. Stocks, including Infosys, Persistent Systems, Torrent Pharma, Medanta, APL, NMDC, and Hindustan Petroleum have formation of long patterns on the charts.
Want to take exposure to a sector which grows much faster than GDP
OMKAR PATIL TECHNICAL & DERIVATIVES ANALYST, ASHIKA GROUP
Where is the Nifty headed? After reaching a lifetime high at 22,124, the Nifty experienced a dip and found support at 21,350-21,400, which aligned with the 26-day exponential moving average, thereby establishing this as a crucial support. The overall trend in the index remains positive as long as the support at 21,350 is maintained. FII net short at the beginning of the January series was 30%, which has now grown to 54%, illustrating the surge in shorts. Also, the RSI, currently hovering around 50, suggests a certain lag in momentum. This is notable as the recent decline in the index, predominantly because of HDFC Bank, appeared polarised, with fewer counterparts contributing to the fall. Hence, we expect the index retains the potential for an upward movement, reaching as high as 22,000.
What Should Investors Do? There is noticeable strength in the broader markets indicating the potential for sustained momentum in the near future. Sectors that could outperform include IT, pharma, metals, and oil & gas. Stocks to closely monitor include Infosys, Persistent, Torrent Pharm, Medanta, APL, NMDC, FACT and HPCL. Conversely, stocks that might exhibit underperformance include Max Financial, Bata, and Berger Paints
KAPIL SHAH TECHNICAL ANALYST, EMKAY GLOBAL FINANCIAL SERVICES
Where is Nifty
