Nifty Smallcap follows LIFO model, be picky; 3 top ideas for the week: Kunal Shah

economictimes.indiatimes.com:

Nifty Smallcap adheres to the LIFO model, where the last stocks to enter the index tend to be the first to exit during a bull market, says Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

“Volatility is expected to persist in the near term, necessitating a stock-specific approach. Similarly, the Midcap Index is also likely to experience volatility, and investors should consider utilizing a disciplined investment strategy like SIP (Systematic Investment Plan) to add to the index or strong-value stocks during market dips,” he says. Edited excerpts from a chat:

Nifty ended the week with a loss of around 2%. How big is the support at around 21,900-level for the coming week?
Kunal Shah: The Nifty index maintains a bearish undertone as long as it remains below the level of 22250. Currently trading below its 20-day moving average, situated at 22220, a decisive break above this level would signal a potential reversal. However, the index faces a strong lower support zone at 21900-21850, and a breach below this on a closing basis could exacerbate selling pressure towards the 21500-21300 zone.

Given the 3% cut seen in the banking index, how should traders position themselves for the week ahead?

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Kunal Shah: Nifty Bank index faces immediate strong resistance