Nifty outlook Nifty has been taking support at its 5-day EMA and holding the short-term trend on the upside. The primary trend of the market is up, but although momentum is diminishing for the last couple of days, as far as Nifty is concerned. However, unless Nifty breaks the near-term support, which is placed at 15,200, traders should continue to hold on to their long positions. Short-term resistance for the Nifty is seen at 15,470-odd levels.
Stock recommendations
Buy CANFIN HOMES (Rs 514): | Target: Rs 580 | Stop-loss: Rs 469 The stock price has broken out from medium-term downward sloping trend line on the weekly chart. It has broken out from the last 12 weeks narrow price consolidation. Volumes have been rising gradually along with price rise. The primary trend of the stock has been bullish with higher tops and higher bottoms. Moreover, the stock has been trading above all important moving average parameters. Indicators and oscillators like RSI, MACD and DMI have turned
Last Close – Rs. 1315
Justification – This gold financing giant has been one of the rank outperformers over the past few years. It is very rare to see any kind of significant correction in the counter and even if it happens, investors just pounce on it to add to their portfolios. After a smart V-shaped recovery from March fiasco, the stock prices went into a consolidation mode, and the range was very much confined. With last week’s smart rally, the daily chart now exhibits a ‘Range Breakout’ and since the move is accompanied by decent volumes, we expect the rally to extend in coming days. Traders are advised to buy on a decline towards 1,290 – 1,270 for a target of Rs1,445 in coming weeks. The stop loss can be placed at Rs.1,210.
Read more about Nifty outlook and stock picks by Sameet Chavan: Buy ITC, Sell ICICI Bank on Business Standard. We have witnessed a good base building in the ITC stock and finally, it has managed to come out of its slumber
By closing at all-time high levels, Nifty has resumed its primary uptrend. In the last two sessions, Nifty has rallied almost 8 per cent. Nifty Bank and Nifty Financial Services indices have outperformed by surging more than 11 per cent. While after the sharp rally there is a possibility of consolidation in the Index, at the same time, stock specific moves could continue on the upside. Support has shifted up to 14,400 odd levels in Nifty. Medium term target for the Nifty is seen somewhere at 15,470 levels, which happens to be 161.8 per cent Fibonacci retracement of the entire down move seen from Jan 2020 top to March 2020 bottom.
Market traded with volatility but managed to recover from intra-day lows of 14,040.10 on Wednesday after the Nifty50 index witnessed sharp correction early on. Nifty closed at 14,146.30, slashing 53.20 points. However, market breadth seems to be in favor of the bulls. Metal, realty & financial services stocks traded with positive sentiments whereas IT, FMCG and pharmaceutical stocks closed with red mark. Nifty bank closed at 31,797.90 adding 75.60 points from the previous day s closing. As per weekly option data, significant call writing on higher strikes ranging from 14,200 to 14,300 is witnessed which shows Nifty might take resistance in the zone of 14,200 as maximum put OI placed here. We can witness profit booking only if Nifty breaks level of 14,000. Therefore, traders should try to create long position keeping close eye on 14,000.