Two stock recommendations from Rajesh Palviya for next week
Paytm can extend its gain in the coming week. One can look to buy this stock for an upside target of 890 to 900 with stop loss of 835, says Rajesh Palviya, Axis Securities. Edited excerpts:
What is your outlook on the levels that we can watch going into next week and what is the major resistance and support level that you are watching out for, especially on the Nifty?
<div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-115111417»>Looking at the near-term, short-term structure, we still believe that we could see furthermore pressure in the market as Nifty has almost closed near to 24,100, that is the critical level for the Nifty, whatever pullback which we have witnessed in the last couple of days. In the derivative data also, there is a long unwinding. So, if it slips below to 24,100, this fall can extend further.
For the last 10-15 days, Nifty is trading below its 50-day as well as 100-day moving average, which is also adding up that the bearish sentiment is still there in the market. And whatever pullback we are getting in the market is not getting any kind of follow-up buying action. As most of the sectors are witnessing supply pressure, none of the sectors are able to give any kind of support to the Nifty in any kind of pullback action. So, we believe that if it trades below 24,100 in the coming week, a possible down move again can retest the previous swing low around 23,800, that is the next level where Nifty can again slip below.
On the higher side, 24,350, 24,400 are the major resistance areas. Until Nifty crosses 24,400, I think comfort would not return on the
