Bank Nifty has not been displaying significant momentum, primarily due to the lackluster performance of the heavyweight HDFC Bank. Rupak De, Senior Technical analyst at LKP Securities, says it may not be advisable to consider shorting until Bank Nifty drops below 44,500. “A decisive decline below this level could potentially drive the index towards 43,800/43,500. On the upside, 45,000 is likely to provide strong resistance,” he said.
Edited excerpts from a chat:
Nifty ended the month 1.5% stronger despite all the negative news surrounding rising crude, bond yields and dollar index. Given the fact that FIIs are having $733 million short position in index futures, where do you see the index going in October which is known as ‘Bear Killer’?
Nifty ended the month of September with gains, following a weak August closing. The recent selling pressure was halted around the 50-EMA. However, we need to close above 19,750 to witness a decent rally in the month of October, which has a reputation as a “bear killer.” A close or sustained move above 19,750 might take Nifty on a ride towards 20,500-20,700. On the lower end, 19,470 is a level that may act as the last support for the bulls.
It looks like till HDFC Bank starts inching upwards, it would be nearly impossible for Nifty Bank to sustain positive momentum. Would you be comfortable shorting the stock as well as the banking index in the October series?
Lately, Bank Nifty has not been displaying significant momentum, primarily due to the lackluster performance of the heavyweight HDFC Bank. However, it may not be advisable to consider shorting until Bank Nifty drops below 44,500. A decisive decline below this level could potentially drive the index towards 43,800/43,500. On the upside, 45,000 is likely to provide strong resistance.Tata Investment Corporation has surprised with a 34% rally in the last one month amid news related to IPO plans of Tata Capital. What are the charts looking like for the week ahead?
Tata Investment Corporation has experienced a remarkable rally, breaking out of a prolonged consolidation range, driven by recent news about the Tata Capital IPO plan. From a technical standpoint, the stock appears to be robust; nevertheless, following such a rapid ascent, it may be prudent to consider buying on dips. A potential decline towards the range of Rs 3,000-2,800 could present a favorable entry point for the stock. However, it’s important to note that there is support at the Rs 2,600 level, and a breach below this level could lead to a consolidation phase for the stock.Nifty PSU Bank was the top sectoral performer in the week. Do you see signs of an impending profit-booking amid overbought levels Which are the PSU bank stocks one should stay away from in the current level?
The PSU banking sector has once again experienced a remarkable rally during the week. Stocks such as Union Bank, PNB, and IOB witnessed substantial gains, and this positive momentum is anticipated to persist into the next week. All these stocks remained above their critical moving averages. Additionally, stocks like SBI, Maharashtra Bank, and Central Bank of India appear to be poised for further upward movement in the coming week.
Give us your top stock picks for the week ahead.
Sell M&M 1554 TGT 1485/1460 SL 1600
M&M has undergone a sharp correction subsequent to the formation of a doji pattern on the daily chart. The RSI is currently in a bearish crossover and is declining. In the short term, it is possible that the stock may decline to levels around 1,485-1,460. On the upper side, resistance is notable at the 1,600 level.
Buy L&TFH 133.25 TGT 145/150 SL 125
L&T Finance Holdings (L&TFH) is showing signs of a potential bullish breakout after a period of consolidation, as it approaches the resistance of a falling trendline.The momentum indicator, RSI, has provided a positive crossover, signaling a potential reversal in the stock’s direction.Crucially, there is visible support at the 125 level, which is expected to act as a cushion for the bulls. If this support holds, it may pave the way for a move towards upside targets of 145 and 150.
