The vacation-shortened week, with solely three days, will mark the top of the monetary 12 months 2023-24 during which Nifty and Sensex scaled new peaks and retail traders made more cash than institutional traders by betting on smallcaps.
Given the top of the monetary 12 months within the final week, many traders are prone to modify their forward of year-end obligations. Moreover, with the month-to-month expiry of Futures and Choices (F&O) contracts occurring throughout the week, we might anticipate a major uptick in buying and selling exercise, says Rupak De, Senior Technical Analyst at LKP Securities.
Axis Financial institution, Indus Tower and PCBL are his prime 3 concepts for the week. Edited excerpts from a chat:
Nifty managed to recuperate losses made on March 19 after exhibiting help close to 21,700-mark. Do you assume the index can keep the 22,000-plus zone this week?
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Rupak De: Nifty witnessed two days of restoration following a Doji formation on the each day chart, bouncing again from the latest low of 21,710. Furthermore, the Nifty has reclaimed the vital 55-day exponential transferring common. Nonetheless, Nifty must cross over 22,100 to witness a transparent rally in the direction of the all-time excessive of twenty-two,525. The sentiment is prone to stay sturdy so long as it stays above 21,950. Subsequently, we would anticipate Nifty to hover above 22,000 within the subsequent week. Nonetheless, if Nifty fails to maintain above 21,950-22,000, the index would possibly enter a consolidation section.
This week could have solely 3 buying and selling days because of two holidays and two lengthy weekends. On condition that there can be a month-to-month expiry as properly, do you see above-average volumes on the three days?
Rupak De: Sometimes, we observe a lower in buying and selling exercise throughout holiday-shortened weeks. Nonetheless, the week marks the top of the monetary 12 months, prompting merchants, traders, and fund managers to regulate their portfolios forward of year-end obligations. Moreover, with the month-to-month expiry of Futures and Choices (F&O) contracts occurring throughout the week, we might anticipate a major uptick in buying and selling exercise.
In contrast to Nifty and Nifty Financial institution, the IT index didn’t recuperate and ended the week down about 6%. Would you like quick positions within the likes of Infosys and HCL Tech?
Rupak De: The shares of Indian IT firms got here beneath strain following a weak income steering from the worldwide tech big Accenture. This led to a bearish sentiment within the Nifty IT index, which skilled a consolidation breakdown, extinguishing hopes of a restoration. Heavy promoting was witnessed throughout shares within the sector.
INFY has retreated to its help stage of 1500 amidst detrimental sentiment. If it breaches this help stage, it may favor quick positions, probably resulting in a downward motion in the direction of 1400. A reversal within the present downtrend might happen if the inventory rises above 1530.
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As for HCLTECH, shorting ought to be averted because the inventory closed 3% above the day’s low, indicating important shopping for curiosity round that stage.
Smallcaps, microcaps and midcaps outperform once more within the week regardless of all of the noise associated to valuations and stress assessments by mutual funds. Does the development look sustainable?
Rupak De: Whereas the headline indices Nifty and Financial institution Nifty have remained in a variety for the previous couple of days, the Midcap and Small Cap indices have began outperforming currently. Following the latest sell-off within the mid and small-cap shares, traders are discovering it worthwhile to take dangers on this house. Consequently, shopping for exercise has been noticeable in selective mid-cap and small-cap shares, resulting in a restoration within the indices. Going ahead, this demand might persist within the quick time period as traders understand worth in these shares.
What can be your prime concepts for the week?
Purchase AXISBANK 1031 TGT 1140 SL 1098
The inventory has been discovering help on the vital 200DMA on the each day chart following a pointy correction. Moreover, it has been discovering help across the earlier swing low on the each day chart. Over the quick time period, the inventory would possibly witness a restoration in the direction of the upper finish, and so long as it stays above the 200DMA, the possibilities of a robust restoration will persist. On the upside, it’d transfer in the direction of 1,140 within the quick time period. Assist on the draw back is positioned at 1,000.
BUY INDUSTOWER 275 TGT 300 SL 267
The inventory has skilled a swing excessive breakout on the each day chart. Moreover, it has sustained above the vital short-term transferring common. The momentum indicator can be indicating constructive momentum. On the upside, it’d transfer in the direction of 300 within the quick time period. Assist on the draw back is positioned at 267.
BUY PCBL 262 TGT 285 SL 252
The inventory has given consolidation breakout on the each day chart. The latest rise in value was backed by elevated quantity. The momentum indicator can be indicating constructive momentum. On the upside, it’d transfer in the direction of 285 within the quick time period. Assist on the draw back is positioned at 252.
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