Technical Views: Nifty in overbought zone, but 26,250 possible
Nifty, with a potential target of 26,250 and immediate support at 25,600. However, caution is advised due to indicators like the FPIs’ long-short ratio reaching 75%, and the monthly RSI crossing 80, according to analysts. Stocks such as HDFC Bank, Kotak Bank, M&M, Maruti, Eicher Motors, L&T, Nestle India, United Spirits, Sobha, Lodha, JSW Steel, Blue Star, and Havells have formed bullish trends on charts.
NAGARAJ SHETTI, TECHNICAL ANALYST, HDFC SECURITIES
Where is Nifty headed this week?
After range-bound action with volatility in the last fi ve sessions, Nifty witnessed an excellent upmove on Friday. The short-term trend of Nifty is sharply positive. Having surged up in one session on Friday, there is a possibility of consolidation or a breather pattern in the short term, before moving up further. The next upside target is around 26,250 with an immediate support at 25,600.
What should an investor do?
One may continue with long positions and look to add more during consolidation. A sustainable move above 25,850-25,900 levels could open the next upside target of 26,200-26,300. It is advised to trail stop loss for higher targets. Any dips down to 25,650-25,600 could be a buying opportunity. Sectors for longs include auto, FMCG, realty, consumer durables and met als. Stocks with positive bias are M&M, Maruti, Eicher Motors, Nestle, United Spirits, Sobha, Lodha, JSW Steel, Blue Star and Havells.
RUCHIT JAIN, LEAD RESEARCH ANALYST, 5PAISA.COM
Stock Trading
Market 101: An Insight into Trendlines and Momentum
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