Nifty set to gain further, bank index lacks strength: Analysts
analysts emphasise the critical importance of Nifty maintaining its position above 19,400. Nifty recorded a 1.73% gain last week, closing at 19,732. Analyst recommendations for trading include stocks such as HCLTech, CESC, Jindal Stainless, Aurobindo Pharma, Dr Reddy’s, NMDC, and Cyient.
KAPIL SHAH TECHNICAL ANALYST, EMKAY GLOBAL FINANCIAL SERVICES
Where is the Nifty headed? In the short term, the index will be considered in a bullish zone if it stays above 19,500.
Fresh momentum can be expected above 19,870. The broader view for the market is that it seems to be range-bound between 19,500 and 19,900. On the other hand, Bank Nifty was down by 1%, resulting in a 2% underperformance last week.
Bank Nifty faced resistance at 44,500 but has support at 43,400 levels. Moving below 43,400 can lead to further pain up to 42,500 levels. The view for Bank Nifty is sideways to negative.
What should investors do? From a strategic index perspective, Nifty Smallcap, Nifty Alpha 50, and Microcaps are in strong movement. Nifty Pharma has hit an all-time high level after 70 days of consolidation, indicating a bullish continuation sign. Nifty IT was the top gainer last week, forming a strong bullish reversal pattern.
The two sectors seem to be the flavour of the market. Moreover, the leading cement stock has displayed a bullish continuation sign. Some of the potential stocks with a bullish structure include Jindal Stainless, Aurobindo Pharma, Dr Reddy’s, and GMR Infra.
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