The Nifty 50 can lead to more consolidation or decline in the near future due to no clear positive indication on the domestic or global front. This has been said by Sudeep Shah, Vice President in SBI Securities and Head of Technical and Derivative Research Desk. In an interview to Moneycontrol, he said that last week the index tried to overcome the important support zone but it was a weak attempt. Bank Nifty has performed better than the broader frontline indexes and closed at the end of the week with the correct but positive note. What else did Shah give and what are his top stock ideas in the new starting week, let’s know …
Do you think correction will continue in the Nifty in the coming week and it will re -test the lower levels of June?
The benchmark Nifty index declined the fourth consecutive week. Many reasons can be held responsible for this frequent weakness- such as lack of strong positive signals, lower earnings of major companies expecting the first quarter, uncertainty on the global trade deal front, all of them have weakened the sentiments of investors.
Last week, the index made a weak attempt to overcome the important support zone. There was a lack of trust in recovery and it soon stopped. The decline not only reflects the slow bullish momentum, but also indicates increasing nervousness in market participants. Due to no clear positive signs on the domestic or global front, the market can move towards more consolidation or decline in the near future.
Talking about important levels for Nifty, 100-Day EMA Zone Nifty of 24,600-24,550 will work as Imidiet support for 50 index. Any permanent change below the level of 24,550 will lead to a level of 24,200 and to correction. However, the 20-day EMA zone of 25,100-25,150 at the top will be a significant barrier to the index.
Do you think that next week Bairs Bank will draw Nifty below its 50-day EMA?
Bank Nifty has performed better than the broader frontline indexes and closed at the end of the week with the correct but positive note. Throughout the week, it tried to overcome the lower levels, which got the support of sellers in veteran banking stocks. Despite the breakout attempts during intraday, the index faced selling pressure with the resistance Jones and finally back down from high levels. By the end of the week, the bank Nifty closed a slight increase of 0.44 percent near the level of 56,500.
From a technical point of view, the gravstone is formed a doji candlestick pattern, which usually indicates a possible upset after the market and move upwards. This pattern indicates caution in the near future. The index needs a strong breakout to re -gain.
Zone bank of 57,300-57,400 can remain a significant obstacle for Nifty. At the same time, the zone of 56,200-56,100 at the bottom will serve as an important support. Any permanent moves below the level of 56,100 will cause more selling pressure and can take the index to 55,500 levels in the short term.
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Which two shares are you thinking of buying in the coming week?
Shyam metalics and energy: On the Weekly Chart, this stock confirmed the cup and handle pattern brakeout, with a strong volume. The important thing is that the breakout candle is a large bullish candle, which reflects good bing interest and firm belief among market participants. This stock is on its record high. All moving averages and Momentum-based indicators are indicating a good rise in this stock. It seems that this stock is in good position to continue its lead in coming sessions. So we recommend buying this stock with a stop-loss of Rs 940 at Rs 975-965. At the top, it can also touch a level of Rs 1,040 in a short term.
Cipla: The stock has recorded a breakout above the trendline leaning downwards on the daily chart, indicating that the trend can be reversed. This breakout is further valued by good volume activity. Is. The stock has also managed to cross both its short term and long -term moving average. The Daily RSI has also gone above its falling trendline, causing further confirmed that it is faster. The stock is constantly ready to move upwards. We recommend depositing this stock at a level of Rs 1,540-1,530 with a stop-loss of Rs 1,480. At the top, it can touch the level of Rs 1,620 in a short term.
What Torrent pharma Is it expected to continue the fast next week?
Yes, Torrent Pharma is expected to rise next week. On the Weekly Chart, the stock has confirmed the Stage-2 cup pattern brakeout, which is supported by strong volume. Share is trading on record high. There is no overhead supply to prevent further growth. All major moving averages are moving upwards, and the Momentum Indicator is in favor of the fast. The Daily RSI is in the Super Bulish Zone, which indicates the strength of strong and frequent purchases. The stock may remain in an increase in coming sessions.
Are you bullish on Sharda Cropkem and Vomamta Labs?
Yes. Last week, both shares performed much better than the wider market. The volume is also strong. Both shares are trading above their major moving averages, and all major indicators and Momentum Osilator are in favor of fast. The indication on the basis of all factors is that these shares are in good position to maintain the rise in the near future.
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