Nifty: Nifty likely to trade in 25,800-26,650 range: Analysts

Technical charts, weekly options data, and India VIX stabilising around 12 indicate consolidation with a positive bias for Nifty. The index is expected to trade in 25,800- 26,650 range this week, according to analysts. If Nifty holds above 26,350, buying is anticipated, pushing the index towards 26,600; while a dip below 26,100 could trigger selling, bringing it down to the 25,800-25,700 range.

Stocks like Sun Pharma, Dr Reddy’s, M&M, Eicher Motors, UBL, HDFC Bank, Tata Power, BPCL, ICICI Bank, Polycab, ABC, and CEAT are recommended by analysts for short-term trading.

RAJESH PALVIYA
SBI SECURITIES HEAD – TECHNICAL DERIVATIVES, AXIS SECURITIES

Where is the Nifty headed?

On the weekly chart, the index has formed a long bullish candle, creating a higher high-low compared to the previous week, indicating a positive bias. On monthly chart, Nifty has posted a positive close for the fourth consecutive month. Nifty and Bank Nifty have shown higher rollovers compared to the previous month, indicating strength. What should investors do?
If Nifty crosses and sustains above 26,350, it would witness buying, leading the index towards 26,500-26,600. However, if it breaks below the level of 26,100, it would witness selling, taking the index towards 25,800-25,700. One can focus on sectors like pharma, automobile, oil & gas, power, and capital goods, as they are likely to exhibit bullish momentum. Stocks like Sun Pharma, Dr Reddy, M&M, Eicher Motors, BPCL, Gail, Reliance, Tata Power, Coal India, and Siemens are likely to behave in a bullish manner.
SAMEET CHAVAN
HEAD RESEARCH – TECHNICAL & DERIVATIVES, ANGEL ONE

Where is the Nifty headed?
From March 2020 lows, Nifty had formed a ‘Bullish Flag’ pattern which consisted of a pole with six quarterly candles. We have precisely reached the target (26,276) of this pattern. Staying light and avoiding aggressive positions seems to be a prudent strategy. 26,000 zone is likely to provide a cushion, followed by a series of support from 25,800 to 25,700. The levels of 26,250–26,300 are immediate hurdles.

What should investors do?
We would avoid going aggressively long. We recommend buying UBL on a decline for a target of Rs 2,290. Traders can participate by following strict stop loss at Rs 2,098. Looking at Friday’s movement, it seems that HDFC Bank is likely to take a breather in the coming days. Only aggressive traders are advised to short on a bounce up to Rs 1,765 -1,770 for a target of Rs 1,710 – 1,690. Stop loss needs to be placed at Rs 1,802.

SUDEEP SHAH
HEAD – TECHNICAL & DERIVATIVE RESEARCH

Where is the Nifty headed?
Last week saw auto, FMCG, metals, banking & IT witness outperformance and we expect the same to continue. Key support for Bank Nifty is at 10-day EMA of 53,350 zone which also coincides with the previous all-time high. Till 53,350 holds, Bank Nifty may continue its momentum up to 55,000. The 10-day EMA zone of 25,850-25,900 will act as crucial support for Nifty and the index could steadily inch higher towards 26,500-26,700. In case 25,850 is breached, profi t booking up to 25,300 cannot be ruled out. Weekly options data and India VIX sustaining around 12 levels suggest consolidation with a positive bias for Nifty within the 25,800-26,650 range this week.

What should investors do?
We expect large-cap names from banking as well as power, auto, IT, metals, oil marketing cos and pharma to outperform. Positive trade set-up is visible in Reliance, Bajaj Finance, Maruti, M&M, TVS Motors, Eicher Motors, Gail, BPCL, Tata Power, and ICICI Bank. In mid-caps, Polycab, ABC and CEAT could continue to witness strong buying.