18400 is on the cards. Given the fact it is expiry week a lot of moving parts about that US debt ceiling etc. as well, where do you see the markets trending going forward?
The market structure remains positive. We have seen Nifty making a retest around levels of 18000 and from there we have seen a swift and a very strong upside. Bank Nifty is the one that is going to hold the key to where the Nifty goes. So overall the structure remains positive and Nifty can head towards a low of 15500. There is a lot of fretting that we witnessed in 18300-18400 call option for the last couple of trading sessions and those writers are now being forced to cover positions so that is a good sign. And if it declines towards 18300, it will again result in fresh buying opportunities and Nifty can head towards 18500. So this particular level of rally can go towards 18500 and one will have to review at those levels if it is giving a close above 18500. We can see higher levels as well. But as I said, the Bank Nifty is going to be the key to watch for.
44200 is the breakout area. If Nifty Bank gives a close above 44200, then we can expect a swift move towards 45000 on Bank Nifty and it can propel Nifty index as well.
What are the top stock recommendations that you are witnessing at this point of time?
We have a buy and sell recommendation. First recommendation would be on Dixon Technology, we have seen the stock correcting a lot. After that, we have seen a small breakout sort of happening rising trend line on daily charts. It has made a retest today around those levels and looks towards the level of 3350. One can keep a stop loss of 3120 and buy Dixon Technologies.
Second recommendation would be a sell on Balrampur Chini. It gave a false breakout about 420 levels and from there we witnessed a correction towards 370. It has made a breakdown retest around 395 today and it is again inching lower. So the setup is quite interesting for short side, keeping a stop loss of Rs 402 one can sell Balrampur Chini for target price of Rs 375.
MCX stock was in the consolidation phase for the longest time, seeing a bit of an up move today. Is that a buying opportunity and anything from the Adani pack that you would recommend?
Well, as far as MCX is concerned I think this is one of those two or three days when a technical bounce back sort of has been seen. So RSI was trading in the oversold zone. We are seeing more of a technical bounce back. It is still below the falling trend line resistance area. I would not be too interested in buying MCX, one it has moved already and from here on this story is just not favourable.
And third it is approaching resistance area. So at this point, I would avoid MCX for trading perspective but any declines towards the level of 1320-1300. I think that can be utilised for trading opportunities.
As far as, Adani pack is concerned we have been on a firm opinion that we do not want to invest or trade on a very short term notice. It is a very high beta thing, it is highly volatile component going around at this point of time. Probably, Ambuja was the only stock that we were slightly bullish and we are not aggressively pitching it to our clients as well, but we were at least having a positive structure over there but from the current juncture I do not see any meaningful buying opportunities in the entire Adani space.