Nifty targets 22,250, says Rajesh Palviya; advises buy on dips strategy
“The Nifty IT sector has faced downward pressure for the past few days. However, stalwarts like TCS and HCL Tech exhibit resilience on longer-term charts, suggesting potential buying opportunities amid corrections. We remain watchful of Nifty IT's ability to hold the 100-day moving average; sustaining above it could signal further buying interest,” says Rajesh Palviya of Axis Securities. Edited excerpts:
ET Now: What is your assessment of the current market conditions? We observed from derivatives data that Nifty found solid support at 21,900. Additionally, market breadth displayed bullish tendencies. Do you anticipate a continuation of the relief rally or is consolidation also probable?
Rajesh Palviya: This week, both indices experienced a breakdown of crucial support levels. Nifty briefly dipped below its 50-day moving average, while Bank Nifty breached the 100-day moving average. However, robust recovery in recent trading sessions has pushed both indices back above the 50-day moving average, indicating a positive near-term outlook. As long as both indices defend this level, the trend is likely to remain bullish. Call-put concentration suggests 22,000 remains a key resistance area, with significant put writing between 21,900-22,000. Sustaining above 22,000 could trigger short-covering, potentially driving Nifty towards 22,250-22,300. Currently, our stance is bullish, recommending a buy-on-dips strategy with 21,900 as a stop-loss for Nifty and 46,500 for Bank Nifty. We anticipate further recovery towards 47,200 for Bank Nifty leading up to the March series expiry.
