Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities:-
The market has made a strong start to the week on the back of strong and positive domestic flows. The increase in the number of IIP and the easing of CPI inflation led to a recovery in financials.
Bank Nifty rose by 1300 points, Fina nce Nifty rose by 900 points, Nifty 50 rose to 15340 levels and Sensex gained by more than 500 points throughout the day. It has proven to be the smartest rally after 4 days of aggregation.
Based on the daily chart, Nifty / Sensex are moving towards 15500/52500 levels with minor resistance at 15360/52250 level and on the downside, 15270/51850 would be the big supports.
Our strategy is to reduce weak long positions and we need to make partial profits in positions where there are abnormal gains. Along with financial, the focus should also be on auto stocks.
Manish Shah, Founder, Niftytriggers.com:-
Expect Nifty to hit 15,500-15,550. Today, Nifty cleared the hurdle to move above 15,250 in style as several top front line stocks saw impressive gains. Also, today’s move shows that Nifty is emerging out of a range of last five days.
The range of the candle is relatively small and Nifty is in a very convincing uptrend as this type of trend can be classified as a meandering trend. Such type of trends can last for a long time as price moves up at a slow and steady pace.
International equities are seeing a renewed effort on the upside. All major equity markets are trading on an uptick. Momentum indicators are still positive.
Today’s range expansion fuels a possibility of a rally to 15,500-15,550 over next several days. As long as Nifty holds above 15,250 the short term trend is up. Nifty remains in a convincing buy mode and more rallies should be expected. Avoid selling short in a vibrant bull market.
After a week of consolidation, Nifty witnessed a gap up opening on Monday and stretches all early gains, ended at all time high of 15,315 levels, rally led by NBFC and Banking stocks.
Technically, nifty formed a “Bull Flag” pattern on daily chart, which is bullish in nature. On Monday, Nifty has given the pattern breakout and also has managed to close above the same so buying momentum may continue for coming days.
On the higher side, Nifty is heading toward 15,500 and on the lower side 15150-15100 may act as a major support zone. Overall trend is positive.
