After Nifty, time for Nifty Bank to hit record high level: Kunal Shah

If Nifty Bank crosses the crucial threshold of 45,000, it is likely to reach its all-time high of 46,200, says Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

The pivotal role in this anticipated upswing will be played by heavyweight contributors from the private banking sector, with notable participants such as HDFC Bank and ICICI Bank, he says.

Edited excerpts:
After ending at record high levels on Day 1 of the December series, what are the targets that you have for the rest of the month?

After an impressive performance in the November series, the index is poised to carry forward its momentum into the upcoming series, supported by substantial long rollovers. The immediate targets for the Nifty index are set at 20,400/20,500, and a sustained move beyond this range could catalyze further momentum towards 20,700/20,800 levels.

Are you seeing chances of Nifty Bank scaling up faster than Nifty in the next few sessions? What would be your trading strategy?

Sustained outperformance is contingent on the Bank Nifty crossing the crucial threshold of 45,000 and maintaining its position above this level. This breakthrough is expected to pave the way for the index to reach its all-time high of 46,200. The pivotal role in this anticipated upswing will be played by heavyweight contributors from the private banking sector, with notable participants such as HDFC Bank and ICICI Bank.

Axis Bank was the top gainer in the Nifty pack with an upside of around 10%. What are the charts telling you?
Axis Bank has exhibited a robust breakout, marking a double top breakout on the daily chart, complemented by notable volumes. The prevailing momentum is vigorous, indicating that any retracement should be perceived as a buying opportunity. The stock is fortified by solid support at 1040. Forecasts for the upcoming series suggest the potential for an additional rally of 5-6%.

Adani Total Gas has been on a strong momentum amid positive news flow. Do you think the momentum will continue in the week ahead?
Following a period of substantial underperformance by the Adani Group, the recent week witnessed some buying activity. The stock is currently in the news, and due to potential heightened volatility, any downturns are recommended for strategic buying. A crucial support level is identified at 630, and if the stock manages to sustain above this mark on a closing basis, it could propel upward momentum towards the 850/900 zone.

What are your top ideas for the week?
Buy NALCO 93.75 TGT 103 SL 90
The stock has experienced a breakout from consolidation after finding support at the critical moving average. It has consistently stayed above the long-term 200-day moving average, indicating a positive trend for the long haul. With the RSI showing a bullish crossover and an upward trajectory, the overall sentiment remains optimistic for the short term. There’s potential for movement towards 103 on the higher end, supported by a base around 90.

Buy JUBLIANT 560-565 TGT 620 SL 545
Jubilant food displays strong bullish indicators, as evidenced by a consolidation breakout in the daily chart, trading above its crucial moving average, and a bullish crossover in the Relative Strength Index (RSI). With these positive signals, it’s suggested to consider a long position in the stock within the range of 560-565, setting a stop loss at 545, and targeting a potential rise to 620. Investors should monitor these technical factors for successful trading decisions