![Tech View: A break above 24,500 could take Nifty to 25,000](https://img.etimg.com/thumb/msid-111564231,width-210,height-158,imgsize-17684,resizemode-75/tech-view-a-break-above-24500-could-take-nifty-to-25000.jpg)
Where is Nifty headed this week?
We expect Nifty to continue trade with a positive bias and gradually head towards 24,700 by July end. Higher peaks and troughs supported by market breadth signifies inherent strength (currently 86% of stocks are trading above 50-day EMAs), and the global setup continues to remain on strong footing and, barring minor retracements, does not flag higher volatility.
What should investors do?
Past five week’s sharp up-move of 15% has hauled the weekly stochastic oscillator in overbought territory (at 95). Thus, the possibility of a temporary breather at higher levels cannot be ruled out ahead of the budget and the June quarter earnings season. Hence, any dip should not be construed as negative. Instead, it will be a buying opportunity as key support is at 23,700. Sectorally, BFSI, IT, oil & gas, capital goods, infra, pharma, and PSU are expected to do well. In large-caps, Reliance, SBI, Infosys, Gail, HAL, L&T, Tata Power, and HUL look good for 5-8% gain; while in midcaps, CIE India, AB Fashion, BHEL, Bharat Dynamics, DCB Bank, Aurobindo Pharma, KPIL, IRFC, NCC, Affle look good for 10-12% upside.
AJIT MISHRA, SVP-RESEARCH, RELIGARE BROKING
Where is Nifty headed this week?
The markets kicked off the new month positively, continuing the uptrend. Supported by favourable global cues and rotational buying in leading sectors, the sentiment remained bullish throughout. Technically, Nifty appears slightly overextended after a two-week rise from a low of 23,350 to a recent high of 24,400. Therefore, some consolidation is expected early in the week, with strong support around the 23,700-24,000 range. A decisive breakout above 24,500 could indicate the next upward move towards the 25,000 milestone.
What should investors do?
With the earnings season approaching and heightened stock-specific volatility expected, investors are advised to focus on stock picking, particularly in sectors such as energy, FMCG, and pharma, for long positions; while remaining selective in others. At the same time, given the continued outperformance of broader indices, traders should adopt a disciplined approach now, preferring fundamentally sound stocks and with exit strategies in place. From the F&O universe, we are Bullish on Apollo Hospitals, Apollo Tyre, Britannia, Deepak Nitrite, ICICI Prulife, L&T, Lupin, Marico, ONGC, Sun Pharma, TCS. Bearish on: Bandhan Bank, Titan, and Zee.
CHANDAN TAPARIA, HEAD TECHNICAL & DERIVATIVES, MOTILAL OSWAL FINANCIAL SERVICES
Where is Nifty headed this week?
Nifty has formed a bullish candle on daily and weekly scales with a higher base which indicates an extension of the ongoing momentum. Till Nifty holds above 24,000 zones, any small decline could be bought for an up-move towards 24,750 and 25,000 zones; while on the downside, key support exists at 24,000 and 23,800 levels. The major trend in Bank Nifty is positive, but we have observed negative divergence on daily scale with relative strength indicator. Now, it has to continue to hold above 52,000 zones to witness a positive move towards 53,350. Holding below 52,000 could change the short-term setup for a consolidative or corrective move in the index.
What should investors do?
Bullish setup is seen in public sector defence, shipping, construction, railway, and also in pharma, energy and realty related sectors. F&O stock wise positive setup seen in BEL, HAL, SBI, Federal Bank, Cummins India, BHEL, ONGC, Reliance, Power Grid, Mphasis, IRCTC, Biocon, Aurobindo Pharma, Glenmark, Sun Pharma, TVS Motor, Trent etc. while some weakness is seen in ZEE Entertainment, Titan and Indiabulls Housing Finance.
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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price