Tech View: Nifty looks strong to move up to 24,780 and 24,965
price and indicator divergence or reversal, leading analysts to expect the Nifty’s gradual upward move to extend to 24,780, followed by 24,965 in the coming weeks. Analysts predict strong performance from stocks such as ITC, HUL, HCLTech, ONGC, Gail, Reliance, SBI, HDFC Life, Crompton Greaves, Vedanta, Indraprastha Gas, BPCL, Dalmia Bharat, Zee, Gujarat Industries Power, Entero Healthcare, and Naukri.
PRITESH MEHTA, ANALYST, YES SECURITIES
Where is Nifty headed?
The Nifty IT index has surged, propelling Nifty to new heights. IT is currently outshining both BankNifty and Financial indices. However, the extremely high disparity between Nifty’s price and its average, coupled with the looming budget, suggests an imminent time-corrective phase. In scenarios where the support base is rising, and our customised breadth is improving, any retracement is likely to be brief. Thus, seizing breakout opportunities can yield substantial rewards. Revised support for Nifty is seen at around 24,200.
What should investors do?
The ratio of Nifty Oil & Gas vs Nifty is attempting to break above the February peak. Should this be confirmed, it will signal a continuation of momentum in oil & gas stocks, with ONGC and Gail expected to stand out for a potential rally of 10-12%. Nifty IT index surged 5% in Friday’s session and recorded a new 2024 high. Our ratio set-up of customised biggie Nifty IT index vs customised Nifty Midcap IT index shows a potential shift towards large-cap IT names. HCLTech is likely to be a major outperformer
