Nifty bullish on charts, could aim at 24,500 : Analysts
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Synopsis
Stocks such as L&T Technology Services, Bharti Airtel, HCL Tech, Infosys, Tech Mahindra, Ipca Labs, Divis Labs, DLF, and National Aluminium show bullish chart patterns, indicating potential upside moves, according to analysts.
By ET Bureau
Technical analysts expect the Nifty to extend Friday’s upward momentum, potentially reaching the 24,500 zone. However, a break below 23,500 could trigger selling pressure, dragging the index toward 23,300–23,000 levels.
RAJESH PALVIYA
HEAD TECHNICAL DERIVATIVES, AXIS SECURITIES
Where is Nifty headed this week?
After seven consecutive weeks of negative close, the index has formed a small bullish candle with a long lower shadow on weekly chart, indicating buying support at lower levels. Chart pattern suggests that if Nifty crosses and sustains above 24,000, it could experience buying pressure, pushing the index toward 24,300-24,600. However, if the index breaks below 23,500, it may face selling pressure, leading to a decline toward 23,300-23,000. Nifty is currently positioned above its 200-day simple moving average of 23,593, which indicates a positive bias in the medium term.
What should investors do?
We expect IT, pharma, real estate, and metals to show a bullish trend. Attention should be on stocks like HCL Tech, Infosys, Tech Mahindra, Ipca Labs, Divis Lab, DLF, Godrej Properties, JSW Steel, and National Aluminium for potential upside momentum. This week, traders can implement a moderately bullish strategy with reduced premium outflow and a lower break even point called the Call Spread of 28 Nov expiry. Buy one lot of the 23,900 Call for Rs 190 and sell one lot of the 24,200 Call for Rs 67. This results in a net outflow, or maximum loss, limited to Rs 3,075. If Nifty closes above the breakeven point of 24,023 on expiry, the strategy will start generating profits up to Rs 4,425
PRITESH MEHTA
EXECUTIVE VICE PRESIDENT – RESEARCH, YES SECURITIES
Where is the Nifty headed?
What should investors do?
Nifty IT has been a major mover and an outperformer. The ratio of IT vs Nifty is trading comfortably above the 2023 peak, we expect strength to persist in this space. TechM and HCLTech are likely to witness followthrough moves of 8-10% in the next few weeks. Nifty Metal index is holding onto multiple support zones. Pullback trade is likely to play out in this space. National Aluminium is outperforming the metals index, we expect the strength to continue. National Aluminium has seen a series of double top buys and a bullish turtle break, suggesting a move of 10%.
RAHUL SHARMA
HEAD - TECHNICAL & DERIVATIVE RESEARCH, JM FINANCIAL SERVICES
Where is the Nifty headed?
The weekly chart shows a piercing candle with a 50% retracement of the previous week’s red candle. Friday’s momentum suggests Nifty could head towards 24,200–24,400. However, this should be viewed as a trading bounce unless significant changes in market data occur over the next few days. Nifty has a support level of 23,800, and 23,500; and resistance levels of 24,200, 24,400, and 24,770. Expect Bank Nifty to join the upmove once it crosses 51,400. Additionally, the IT index has shown a fresh breakout after 2.5 months of sideways movement, indicating that IT stocks may outperform going forward.
What should investors do?
Investors can look to exit positions in which they have been stuck around the 24,200-24,400 mark. Alternatively, sector rotation can be done, especially into IT stocks. Buy Bharti Airtel: After weeks of correction, signs of a reversal are emerging. Targets Rs 1,640 and Rs 1,670. Maintain a stop loss at Rs 1,510. Breaking out from two months of underperformance, L&T Technology Services shows potential for targets of Rs 5,700 and Rs 5,800. Maintain a stop loss at Rs 5,150 for long positions.
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Stocks such as L&T Technology Services, Bharti Airtel, HCL Tech, Infosys, Tech Mahindra, Ipca Labs, Divis Labs, DLF, and National Aluminium show bullish chart patterns, indicating potential upside moves, according to analysts.RAJESH PALVIYA
HEAD TECHNICAL DERIVATIVES, AXIS SECURITIES
Where is Nifty headed this week?
After seven consecutive weeks of negative close, the index has formed a small bullish candle with a long lower shadow on weekly chart, indicating buying support at lower levels. Chart pattern suggests that if Nifty crosses and sustains above 24,000, it could experience buying pressure, pushing the index toward 24,300-24,600. However, if the index breaks below 23,500, it may face selling pressure, leading to a decline toward 23,300-23,000. Nifty is currently positioned above its 200-day simple moving average of 23,593, which indicates a positive bias in the medium term.
What should investors do?
We expect IT, pharma, real estate, and metals to show a bullish trend. Attention should be on stocks like HCL Tech, Infosys, Tech Mahindra, Ipca Labs, Divis Lab, DLF, Godrej Properties, JSW Steel, and National Aluminium for potential upside momentum. This week, traders can implement a moderately bullish strategy with reduced premium outflow and a lower break even point called the Call Spread of 28 Nov expiry. Buy one lot of the 23,900 Call for Rs 190 and sell one lot of the 24,200 Call for Rs 67. This results in a net outflow, or maximum loss, limited to Rs 3,075. If Nifty closes above the breakeven point of 24,023 on expiry, the strategy will start generating profits up to Rs 4,425
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PRITESH MEHTA
EXECUTIVE VICE PRESIDENT – RESEARCH, YES SECURITIES
Stocks Recommendations
Where is the Nifty headed?
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Nifty found respite around the confluence of support zone which is a three-digit Gann number of 23,300, a 61.8% retracement of its entire move from a low of election day outcome to all-time high and bullish crossover in our customised breadth of Nifty & Bank Nifty. We expect the index to build on Friday’s comeback and gradually move higher towards the 24,500 zone. Our customised Nifty top 10 index has rebounded off the support zone, implying strength in index biggies. 23,300 is likely to act as major support. Sustenance of Bank Nifty above 200-DMA is essential for follow-through moves.What should investors do?
Nifty IT has been a major mover and an outperformer. The ratio of IT vs Nifty is trading comfortably above the 2023 peak, we expect strength to persist in this space. TechM and HCLTech are likely to witness followthrough moves of 8-10% in the next few weeks. Nifty Metal index is holding onto multiple support zones. Pullback trade is likely to play out in this space. National Aluminium is outperforming the metals index, we expect the strength to continue. National Aluminium has seen a series of double top buys and a bullish turtle break, suggesting a move of 10%.
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RAHUL SHARMA
HEAD - TECHNICAL & DERIVATIVE RESEARCH, JM FINANCIAL SERVICES
Where is the Nifty headed?
The weekly chart shows a piercing candle with a 50% retracement of the previous week’s red candle. Friday’s momentum suggests Nifty could head towards 24,200–24,400. However, this should be viewed as a trading bounce unless significant changes in market data occur over the next few days. Nifty has a support level of 23,800, and 23,500; and resistance levels of 24,200, 24,400, and 24,770. Expect Bank Nifty to join the upmove once it crosses 51,400. Additionally, the IT index has shown a fresh breakout after 2.5 months of sideways movement, indicating that IT stocks may outperform going forward.
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What should investors do? Investors can look to exit positions in which they have been stuck around the 24,200-24,400 mark. Alternatively, sector rotation can be done, especially into IT stocks. Buy Bharti Airtel: After weeks of correction, signs of a reversal are emerging. Targets Rs 1,640 and Rs 1,670. Maintain a stop loss at Rs 1,510. Breaking out from two months of underperformance, L&T Technology Services shows potential for targets of Rs 5,700 and Rs 5,800. Maintain a stop loss at Rs 5,150 for long positions.
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