Momentum is still strong in the bank Nifty and is especially private sector bank leading. At the same time, the Nifty can test the levels of 25,500 and 25,700 in the near future. It is believed that Deputy Vice President in SBI Securities and Sudeep Shah, Head of Technical and Derivative Research Desk. In an interview to Moneycontrol, he said that the bank Nifty can continue its boom in the near future, given the improvement in chart structure and Momentum indicators. It can test the level of 56,800 and can also go up to 57,500. What else did Shah give and what are his top stock ideas in the new starting week, let’s know …
Do you think the newly started in the week will cross the high level of the previous week of 25222 and will last it?
In the last 28 trading sessions, the Nifty is implicating in a narrow range of 25222 to 24,462. Of these, 16 sessions saw gap-up or gap-down opening. This means that even though the index has remained in one range, there was instability in day -long trading. This fluctuating but limited movement has rarely given the opportunities of directional trades. Due to this, traders remain alert.
However, in the last trading session of the week, Bulls took command and Nifty closed over a psychological level of 25,000 with a weekly gains of 1.59%. The Nifty closed near the highest level of the week, which further forces the Bullish Sentinement.
From the technical perspective, this long -term consolidation phase has affected the major indicators. The upward slope of short and medium term moving average slowed down, indicating a decline in Momentum. At the same time, Daily RSI (Relative Strength Index) is also moving sideways. This is an indication that no clear direction is being made. Trend Strength Indicator ADX is currently close to 13. This is the lowest level after July 2024.
In addition, the bolling bands on the daily chart have shrunk. This is called “Bollinger Band Squege” in the technical term. This formation is formed when the ups and downs decreases significantly and the price is trading in a very limited range. There is usually followed by a large breakout or breakdown.
Talking about the important levels of Nifty, the zone of 24,880–24,850 will serve as Imidiet support. At the same time, the zone of 25,200–25,250 will be a significant obstruction. If the Nifty survives above 25250, it can start moving upwards again. If this happens, the Nifty can test 25,500 and 25,700 levels in the near future.
What are your top 2 stock pics for next week?
Mahindra and mahindra (m & m): The Nifty Auto Index performed well against the main index last week. M&M shares have given a downward sloping trendline breakout with good volumes. The Daily RSI has gone above 60 and is moving further. It is advisable to deposit this stock in a zone of ₹ 3,190–3,160. Keep stoploss at ₹ 3,060. The stock can test the level of ₹ 3,400 at the top.
Indus towers: The stock on Friday gave a fighting channel breakout on the Daily scale, which was supported by strong volume. The stock is currently trading on its short and long -term moving averages and these averages are moving upwards. Momentum indicators are also indicating strong bullish Momentum. Therefore, it is advisable to deposit the stock in a zone of ₹ 405–400. Keep stoploss at ₹ 385. The share can be a level of ₹ 440 further.
Do you recommend strong purchases in wari energy and India electronics at current levels?
Yes, we remain constructive on the current levels and India Electronics (BEL) and believe that they can continue their speed in the near future. BEL share is trading on record high. This reflects strong underling strength. All major moving averages are positive. Momentum indicators are pointing to fast. The lack of hysterical resistance supports the Bulish Outlook. Waaree energy on the other hand is indicating a possible breakout. It is currently trading near a downward sloping trendline on the daily chart. Closing the share above this trendline can begin a new wave of boom.
Are you still bullish on Bharti Airtel and MCX India, because both of them have recently had a fast breakout?
Yes, both of us are still bullish on stocks. The recent action in their price indicates that the uptrend is still in the initial stage. Both shares have given strong breakouts on the daily chart. Heavy volume has also been supported. It is clear that institutional participation and large -scale bing interest remains.
Talking about the technical side, the existing chart structure and positive momentum indicators indicate that the strength remains. Moving averages are moving upwards and good consolidation has also taken place before the breakout. This indicates that the rally in both shares may be sustainable. Both shares can maintain their out performance in the near period.
