Pharma ETF good option for going long, JSW Steel among 3 stock ideas: Rupak De

The short-term trend in pharma stocks appears positive, and pharma ETF could be a good option for a short-term long position, says Rupak De, Senior Technical Analyst at LKP Securities.

In this chat with ET Markets, he also shares 3 stock ideas for the week — Kotak Mahindra Bank, JSW Steel and Godfrey Phillips. Edited excerpts:

After consolidation seen last week, how do you read the momentum in the week going ahead? What are the key levels to watch for Nifty traders?
The Nifty appears to be consolidating after a wedge pattern breakout. It saw some volatility following the RBI Governor’s monetary policy announcement. However, it managed to stay above the 21 EMA on the daily chart, indicating that the short-term trend remains positive. As long as the index holds above 23,450, the bullish momentum is likely to continue. A sharp drop below this level could spark some short-term panic, but until that happens, the overall sentiment remains optimistic. On the upside, resistance is seen at 23,700, and a strong breakout above this level could pave the way for a rally toward 24,050.


Do you think that the weakness seen in banking stocks on Friday after RBI rate cut is likely to extend in the week ahead?
Bank Nifty has been consolidating after a recent breakout on the daily chart. Although some weakness was observed following the RBI rate cut, it did not significantly impact the short-term bullish sentiment. Going forward, the 50,000-49,700 zone is expected to act as strong support, while on the higher end, the index could