Market next week : Talking about the future prospects of the market Sudeep Shah, Head of Technical Research and Derivatives, SBI Securities Said that after a strong rise of more than 1,500 points from 24,588 in October, Nifty remained in consolidation mode throughout the week. The index had come close to its record high, but its momentum slowed down due to global uncertainty and profit-taking. A shooting star candle on the weekly chart is indicating exhaustion after a sharp rise. Nifty remained in a narrow range of 26,104-25,711 for 11 sessions, while RSI came down to 57.84, indicating slowing momentum.
Despite this, the broad trend remains positive with ADX remaining strong. There is support for Nifty at 25,520-25,500. If it goes below this, Nifty may fall to 25,300. There is resistance for Nifty at 26,100-26,150, above which the uptrend can start again.
Opinion on Bank Nifty
Sudeep Shah talking on Bank Nifty Said that after touching the all-time high of 58,578 last week, consolidation was seen in Bank Nifty which is a sign of fatigue at the upper levels. Profit booking around 58,600 limited the index’s gains, forming a bearish candle with a long upper shadow. The vehicle chart pattern is also showing signs of sluggishness. However, overall sentiment seems positive.
The RSI has dropped from 76.64 to 62.29, while the MACD and ADX are confirming that the bearish trend continues. Support for Bank Nifty is at 57,600-57,500, which is according to 23.6 percent Fibonacci retracement. At the same time, there is resistance on the upside at 58,400-58,500. After crossing this wall, Bank Nifty can again gain momentum towards 59,000-59,500. Despite short-term consolidation, the bullish structure remains in place.
Sudeep Shah’s two favorite shares for the next week
Sudeep Shah’s two favorite stocks for the next week Ajmera Realty and Infra India And Bharat Electronics is,
Ajmera Realty and Infra India: Sudeep Shah says that the stock has broken the downward sloping trendline with strong volume, which is a bullish sign. Its return above 20-DEMA indicates strength, while RSI above 60 and extension of DI lines confirm better momentum. MACD crossover further strengthens the bullish trend. Buy incrementally in the range of Rs 1,072-1,067 with stop-loss of Rs 1,035 for an upside target of Rs 1,145.
Bharat Electronics: Sudeep Shah said BEL has broken the range of Rs 425-390 with heavy volumes, confirming a strong uptrend. Its RSI is rising, the price is trading above important averages and closing above the Bollinger Bands is a sign of renewed buying interest. Buy this stock gradually in the zone of Rs 426-421 with a stop-loss of Rs 410 for a short term target of Rs 455.
PB Fintech: Sudeep Shah also has a bullish view on PB Fintech. He says the stock remains technically strong after a clear breakout. PB Fintech has broken major resistance levels and is trading above important moving averages. Its RSI trend and MACD above zero also confirm the bullish trend. Overall, the stock remains in a strong uptrend and the technical setup shows the possibility of further upside. Traders would be advised to buy this stock on dips with good risk management.
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