Agencies“It is anticipated that the bulls will regain control once the Nifty index breaks above the 18600 level on a closing basis,” says Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
In an interview with ETMarkets, Shah said: “This breakthrough is considered significant as it would confirm the establishment of a new all-time high level for the index” Edited excerpts:
The Indian market closed flat with a positive bias for the week ended 2 June. We touched 18600 levels in the week gone by but failed to hold momentum. What led to the price action on D-St?
The Indian capital markets are currently witnessing an ongoing battle between the bulls and the bears. This indicates a persistent struggle for control between buyers and sellers.
However, despite this ongoing fight, the long-term trend in the market remains bullish. This suggests that over an extended period, there is overall positive sentiment and upward momentum in the market.
Investors are advised to adopt a "buy on dip" approach, meaning they should consider buying stocks or assets when prices experience temporary declines or pullbacks.
Additionally, it is noteworthy that there is a support level at 18400, which implies that the market has shown stability and buying interest at that level in the past.
Do you see Nifty50 hitting record highs in the coming week?
The Indian equity markets are currently poised for a potential bullish momentum. It is anticipated that the bulls will regain control once the Nifty index breaks above the 18600 level on a closing basis.
This breakthrough is considered significant as it would confirm the establishment of a new all-time high level for the index.
What led to price action in realty and consumer durable stocks?
The realty sector in India continues to experience optimism, as there is currently a pause in interest rate hikes. This development provides relief to the sector and supports the overall positive sentiment.
Additionally, the recent concession on cluster redevelopment in Mumbai has further added joy to the realty sector. This move is expected to unlock new opportunities and drive growth in the sector.
In another industry, the consumer durable sector is poised to grow in 2023 with strong momentum. This indicates a positive outlook for companies engaged in manufacturing and selling consumer durables.
Factors such as improving economic conditions, rising disposable incomes, and changing consumer preferences are likely to drive demand and fuel growth in the sector.
Oil & gas suffered the most – what is weighing on the sector?
The oil and gas sector is expected to remain subdued due to macroeconomic factors. These factors could include global economic conditions, supply and demand dynamics, geopolitical tensions, or fluctuations in oil prices.
The subdued outlook suggests that the sector may face challenges or limitations in terms of growth and performance.
On the technical chart, the index in the oil and gas sector is encountering resistance at 7600, which coincides with its 200-day Exponential Moving Average (EMA).
This resistance level indicates a significant hurdle that the index is struggling to surpass. The 200-day EMA is a widely followed technical indicator that represents the average price of the index over the past 200 trading days.
The fact that the index is facing resistance at this level suggests that there is selling pressure or a lack of buying interest around this price point.
Any strategy that one could deploy on Nifty or Nifty Bank?
a) Index: Nifty
View Bulllish
Strategy Name: Protective Put
Buy Nifty Fut 18600
Buy Nifty 1600pe At 100
Max Risk: 100(100*50=5000)
Maximum Profit: 300-400
Smallcap and midcap did outperform Sensex in the week gone by – how should one play the broader market theme in the coming week?
The small-cap and mid-cap segments have emerged as the biggest outperformers in the market. This indicates that stocks within these categories have shown significant growth and have outpaced the broader market indices.
The strong momentum in these segments suggests positive investor sentiment and favorable market conditions.
Given the robust momentum, market participants are advised to adopt a "buy on dip" approach — meaning they should consider purchasing stocks within the small-cap and mid-cap segments during temporary price declines or pullbacks.
This strategy allows investors to take advantage of potential buying opportunities and capitalize on the upward momentum in these segments.
Furthermore, the Nifty Midcap Index has identified a strong support level at 32800. This support level indicates a price level where buying interest has previously been observed, potentially providing a cushion for the index during market downturns.
Any thematic stocks which are on your radar for a short to medium-term basis?
Here are a few trading ideas -
Minda Corporation: Buy | LTP Rs 298| Buy at Rs 290| Stop Loss Rs 275| Target Rs 315-330| Upside 5%
The stock of Minda Corporation is currently exhibiting a strong uptrend on the long-term time frame. This indicates that the stock has been consistently moving higher over an extended period, suggesting positive momentum.
Recently, the stock has experienced a breakout from a consolidation phase, where the price was range-bound and lacked a clear direction.
This breakout suggests a potential continuation of the uptrend and the emergence of new buying interest in the stock.
Minda Corporation has a support level at Rs 275, indicating a price level where buyers have shown interest and may act as a floor for potential pullbacks.
On the upside, the stock has potential upside targets of Rs 315 and Rs 330, suggesting potential further gains.
Laurus Labs Ltd: Buy | LTP Rs 347 | Buy at Rs 345 | Stop Loss Rs 330 | Target Rs 360-370 | Upside 3%
The stock of Laurus Labs has experienced a breakout on the daily chart, accompanied by a sharp surge in trading volumes. This breakout indicates a significant change in the stock's price movement.
The momentum indicator RSI has also generated a buy crossover, confirming the shift in momentum towards the upside.
The stock has a lower-end support level at 330, providing a foundation for potential price movements. On the upside, the stock has potential targets at 360 and 370, suggesting possible further gains.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
In an interview with ETMarkets, Shah said: “This breakthrough is considered significant as it would confirm the establishment of a new all-time high level for the index” Edited excerpts:
The Indian market closed flat with a positive bias for the week ended 2 June. We touched 18600 levels in the week gone by but failed to hold momentum. What led to the price action on D-St?
The Indian capital markets are currently witnessing an ongoing battle between the bulls and the bears. This indicates a persistent struggle for control between buyers and sellers.
However, despite this ongoing fight, the long-term trend in the market remains bullish. This suggests that over an extended period, there is overall positive sentiment and upward momentum in the market.
Investors are advised to adopt a "buy on dip" approach, meaning they should consider buying stocks or assets when prices experience temporary declines or pullbacks.
Additionally, it is noteworthy that there is a support level at 18400, which implies that the market has shown stability and buying interest at that level in the past.
Do you see Nifty50 hitting record highs in the coming week?
The Indian equity markets are currently poised for a potential bullish momentum. It is anticipated that the bulls will regain control once the Nifty index breaks above the 18600 level on a closing basis.
This breakthrough is considered significant as it would confirm the establishment of a new all-time high level for the index.
What led to price action in realty and consumer durable stocks?
The realty sector in India continues to experience optimism, as there is currently a pause in interest rate hikes. This development provides relief to the sector and supports the overall positive sentiment.
Additionally, the recent concession on cluster redevelopment in Mumbai has further added joy to the realty sector. This move is expected to unlock new opportunities and drive growth in the sector.
In another industry, the consumer durable sector is poised to grow in 2023 with strong momentum. This indicates a positive outlook for companies engaged in manufacturing and selling consumer durables.
Factors such as improving economic conditions, rising disposable incomes, and changing consumer preferences are likely to drive demand and fuel growth in the sector.
Oil & gas suffered the most – what is weighing on the sector?
The oil and gas sector is expected to remain subdued due to macroeconomic factors. These factors could include global economic conditions, supply and demand dynamics, geopolitical tensions, or fluctuations in oil prices.
The subdued outlook suggests that the sector may face challenges or limitations in terms of growth and performance.
On the technical chart, the index in the oil and gas sector is encountering resistance at 7600, which coincides with its 200-day Exponential Moving Average (EMA).
This resistance level indicates a significant hurdle that the index is struggling to surpass. The 200-day EMA is a widely followed technical indicator that represents the average price of the index over the past 200 trading days.
The fact that the index is facing resistance at this level suggests that there is selling pressure or a lack of buying interest around this price point.
Any strategy that one could deploy on Nifty or Nifty Bank?
a) Index: Nifty
View Bulllish
Strategy Name: Protective Put
Buy Nifty Fut 18600
Buy Nifty 1600pe At 100
Max Risk: 100(100*50=5000)
Maximum Profit: 300-400
Smallcap and midcap did outperform Sensex in the week gone by – how should one play the broader market theme in the coming week?
The small-cap and mid-cap segments have emerged as the biggest outperformers in the market. This indicates that stocks within these categories have shown significant growth and have outpaced the broader market indices.
The strong momentum in these segments suggests positive investor sentiment and favorable market conditions.
Given the robust momentum, market participants are advised to adopt a "buy on dip" approach — meaning they should consider purchasing stocks within the small-cap and mid-cap segments during temporary price declines or pullbacks.
This strategy allows investors to take advantage of potential buying opportunities and capitalize on the upward momentum in these segments.
Furthermore, the Nifty Midcap Index has identified a strong support level at 32800. This support level indicates a price level where buying interest has previously been observed, potentially providing a cushion for the index during market downturns.
Any thematic stocks which are on your radar for a short to medium-term basis?
Here are a few trading ideas -
Minda Corporation: Buy | LTP Rs 298| Buy at Rs 290| Stop Loss Rs 275| Target Rs 315-330| Upside 5%
The stock of Minda Corporation is currently exhibiting a strong uptrend on the long-term time frame. This indicates that the stock has been consistently moving higher over an extended period, suggesting positive momentum.
Recently, the stock has experienced a breakout from a consolidation phase, where the price was range-bound and lacked a clear direction.
This breakout suggests a potential continuation of the uptrend and the emergence of new buying interest in the stock.
Minda Corporation has a support level at Rs 275, indicating a price level where buyers have shown interest and may act as a floor for potential pullbacks.
On the upside, the stock has potential upside targets of Rs 315 and Rs 330, suggesting potential further gains.
Laurus Labs Ltd: Buy | LTP Rs 347 | Buy at Rs 345 | Stop Loss Rs 330 | Target Rs 360-370 | Upside 3%
The stock of Laurus Labs has experienced a breakout on the daily chart, accompanied by a sharp surge in trading volumes. This breakout indicates a significant change in the stock's price movement.
The momentum indicator RSI has also generated a buy crossover, confirming the shift in momentum towards the upside.
The stock has a lower-end support level at 330, providing a foundation for potential price movements. On the upside, the stock has potential targets at 360 and 370, suggesting possible further gains.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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