Let us just start by talking about the markets today. It had been sluggish for the last couple of weeks. We have not seen any excitement, but today the markets are showing a different story. Could we expect this story to continue going forward or this is just one of those days where we are seeing a good up move?
Yes, today we have got a gap up opening and from there onwards we have seen a positive moment continuation. So, I believe as of now the Nifty will continue this rally towards 17,600 that is the immediate resistance zone for the Nifty supported by its previous swing resistance. Any move above that level on the closing basis 17,600, this rally is likely to be extended towards 17,800 levels. So, I believe as of now the Nifty also is well placed about 200 DMA which is a very positive indication on the daily chart basis. So, I believe 17,800 is likely to be tested in the coming week as such as long as Nifty sustains above 17,400 level that with the immediate support levels. So, the view is definitely positive. One should hold the long positions or should create a long position as long as the Nifty holds the support of 17,400 levels. Coming towards the Bank Nifty, it was the Bank Nifty who has given support to the Nifty as such because we have seen a very good amount of a positive momentum to the Bank Nifty on today’s intraday basis. It is up by almost 2% and I believe this strength is likely to be continued in the coming week as well because it may continue this rally towards 50 DMA which comes to at around 41,700 to 41,800 levels. So that is the resistance zone and up to that level I am looking towards the positive momentum on the Nifty. So, the view will remain positive on both the indices for the next week.
We have time and again seen a lot of whipsaw in Adani Group stocks. How do you rate the move today? The whipsaw has been low, they opened higher and then added on to gain. So, the same confidence holds for them or what to watch out for if you could just tell our viewers.
We have seen a whipsaw in this particular stock because the bulk orders are just initiating in this particular stock. But if you look on the technical background, the weekly chart indicates that the stock has formed the positive divergence from the oversold zone. Whenever the stock comes at the oversold zone levels, we have seen that we might get to see the pullback rally and which we are witnessing from the last two trading sessions. So, I believe that as long as it sustains the support of 1700 levels, especially Adani Enterprises, it has a strong potential to reach up to 2000 to 2200. So, this is the pullback rally not a trend reversal because since we are getting a positive momentum from the oversold zone so major shorts will not be initiated at the current market price but definitely once the stock reaches up to 2100 or 2200 levels, then again we might witness some profit booking or say the sell off at that level.
But at the current level, definitely it is a pullback rally we are witnessing and which might be a short lived one. So, if we are having any long position from the lower levels, one should hold on for immediate target of 2000, 2100 levels.
So, apart from Adani, banking, Nifty which we have spoken about, how would you look at it in terms of any other names, any other interesting stocks?
For Bank Nifty I am looking for a target on the higher side as I mentioned now that is the 42,700 levels. Coming towards stock specific action, definitely SBI looks very interesting on the technical setup. Today also the stock is almost up by 5.5%. We have seen that this particular counter has touched the feet of nearby 490 to 500 levels and from there onwards we are witnessing a very strong positive rally. The interesting point is that it has just reached above the 200 DMA which is a very strong average. We are looking on the technical front and as of now the stock is just moving ahead towards at least Rs 570 to Rs 600 levels. So, SBI is one counter one can go long at the current market price also. Those who are looking for a portfolio building asset, I believe SBI will be a very strong contender to take a buy call at the current market price also. I believe it has a potential to reach up to 600 to 650 levels in a very short span of time. So, SBI is the one strong counter.
Second is HDFC Bank. This particular stock also looks very good on the technical front even though this particular stock has shown a correction, but at 1580 to 1570 levels there are two support levels that have formed.
On the technical front, it is just forming a W-shape pattern and I believe the pattern is likely to be extended towards 1650 to 1680 levels. So one can take a long position into HDFC Bank as well.