Considering the significant decline witnessed last month, technical analysts anticipate a potential pullback in the Nifty index to 19,450-19,500 levels. Analysts emphasise that only by staying above this range can the index find respite from the persisting volatility. In terms of technical parameters, they are positive on Apollo Hospitals, Bharti Airtel, Godrej Consumer, Godrej Properties, L&T Finance, Persistent, Tata Motors, Transformers & Rectifiers, and Gravita.
AJIT MISHRA
SVP-RESEARCH, RELIGARE BROKING
Where is the Nifty headed?
Nifty managed to hold the support zone of the 200 EMA of around 18,800 last week; however, it has now reached closer to the resistance zone of multiple moving averages. We need a decisive close above 19,500 to negate the bearish tone and inch towards 19,850 levels. On the downside, the 18,800- 19,000 zone would be a cushion if the decline resumes.
What should investors do?
After retesting the trendline support on the weekly chart, Apollo Hospital saw a sharp recovery. Bharti Airtel has formed a fresh buying pivot after a marginal retracement to the shortterm moving average on a weekly chart. Godrej Consumer has witnessed a strong rebound and reclaimed all the major moving averages. Godrej Properties has seen a fresh breakout from a consolidation range with noticeable volumes. Buoyancy in the realty pack is adding to the positivity. Lal Path Labs is set to end a oneand-a-half-year-long consolidation phase. Accumulate gradually. HDFC Bank is underperforming within the private banking space. Expect a subdued move to continue. M&M has been drifting gradually lower after a breakdown from a distribution pattern. Negative tone to extend.
ABHILASH PAGARIA
HEAD-NUVAMA ALTERNATIVE & QUANTITATIVE RESEARCH
Where is the Nifty headed?
A deadlock appears to persist between bullish and bearish sentiments. FPIs maintain substantial short positions, while retail and HNI individuals have accumulated longs in index and single stock futures, nearing historic highs. In the near future, Nifty may trade within 19,050 to 19,400, with the Bank Nifty potentially lagging.
What should investors do?
Positional investors should consider Petronet LNG for 25% plus upside and limited downside —favourable risk-reward, stock price not reflecting growth, PER of 7x, and 5% dividend yield. Schaeffler is also continuously expanding its product line, benefiting from rising localisation and market share gains and inclusion in MSCI Standard is expected in 6-9 months. Shriram Finance is poised to replace UPL, expecting a 12-15% surge pre-announcement. Persistent shows strong potential, possibly entering MSCI in November rejig and can see 6-7% gains.
VIRAJ VYAS
TECHNICAL & DERIVATIVES ANALYST, ASHIKA STOCK BROKING
Where is the Nifty headed?
The index witnessed a corrective spell towards the end of October but managed a smart recovery from the 200-day moving average (DMA) last week. The 18,850 (200-day EMA) level will be critical to avoid incremental downside, while immediate support is seen at the 19,000 level. Given the extent of the fall last month, some pullback was warranted, and the current leg of pullback can extend towards 19,450-19,500. Sustaining above this level is necessary for the index to provide a much-needed breather from the ongoing volatility before attempting a recovery towards the 19,900 level. Going forward, it will be critical to see FPI positioning in index futures as we have begun to see a mild retreat from the net short percentage from 89% to 82% as of Friday’s close.
What should investors do?
The medium-term bullish sentiment remains unaffected as long as the 19,000-18,000 zone holds. This presents an opportunity for investors to use these dips to accumulate quality stocks. The broader market is strong, suggesting the potential for continued stock-specific rallies and notable sectoral rotation. Notably, L&T Finance, Persistent, Tata Motors, Transformers & Rectifiers, Anand Rathi, Gravita and Lodha exhibit strength and could outperform in the upcoming days.
