Nifty formed a bear candle with upper and lower shadow on the weekly scale. What are the key levels to watch out for the monthly expiry ahead?
Nifty exhibited a bullish hammer pattern on the daily chart, suggesting a possible reversal in the trend after a reasonable decline. However, it is crucial to note that on the weekly scale, a bearish candle with upper and lower shadows was observed. Therefore, while the hammer pattern signals a potential upside, a decisive move above the 18450 level is required to confirm the reversal and negate the bearish effect of the weekly candlestick pattern.From a technical perspective, the 18050-18000 range served as a strong support zone during the session, highlighting its pivotal role. This support level played a significant role in safeguarding the market from further decline and is expected to act as a key anchor in the near term. On the upside, the range of 18400-18450 is likely to act as a sturdy resistance level. A decisive breach above this range would be necessary to trigger fresh long positions in the market.
IT stocks saw some buying interest. Do you see midcap IT stocks racing ahead?
It appears that the IT sector has been consolidating over the past month, but there was significant buying interest in heavyweight stocks last week. The Fibonacci retracement suggests that the IT index may attempt to test the range of 29000-30000 in the coming weeks. The IT sector is likely to remain in focus as the Nasdaq continues to outperform.
In a plunging market, midcap IT stocks such as Cyient, Bsoft, KPIT Technologies, OFSS, and Mastek have performed well and maintained their strength. One who has a horizon for 6 to 12 months can look upon these stocks and accumulate in trances. Determining the optimal timing for buying and selling is essential for active self-directed investing.
Stocks like CreditAccess Grammen and Amber rallied over 15% in the week. What’s the outlook for the new week?
Credit Access Grameen’s share price has surged to an all-time high of Rs 1,234 following the company’s announcement of its March quarter scorecard. The report revealed robust growth in key metrics, including profit and revenue, reflecting the company’s strong performance.
From a technical perspective, the stock has successfully broken out of the 1120-1150 zone, which had been acting as a significant resistance for the past year. This breakout was accompanied by a notable increase in trading volume, indicating substantial market interest.However, it is worth noting that the stock is currently exhibiting overbought conditions on the daily charts, with the Relative Strength Index (RSI) touching 85. Considering these factors, we anticipate some profit-taking and a period of sideways consolidation in the short term before the stock resumes its upward trajectory. Such a consolidation phase would provide an opportunity for the stock to stabilize and establish a solid base, potentially attracting more investors in the long run.
Which are the 3-4 top ideas that would be on your radar for the week ahead?
M&M is currently trading near 1260. The stock has formed a hammer pattern on the daily chart which indicates the reversal of bearish trend in stock. The Strength is shown by the RSI indicator’s current trading range of 58 levels. The stock is currently trading above all of the key moving averages. A small resistance is placed near 1285 levels; if the stock surpasses this level, it may move towards 1325 levels and higher. With a medium-term target price of 1325, we advise purchasing M&M at the CMP of 1260. It can also be accumulated close to 1240 levels. If the price closes below 1220, our analysis will be regarded as being invalid.
Kotak Bank
The price is consolidating and building a firm base in the 1910–1920 zone on the weekly chart. The short-term support is further confirmed by the stock’s current price, which is above 21 Simple Moving Averages. On the hourly chart, it is also moving in a higher high-higher low pattern. The daily period RSI plot is still at a level of 60. On the daily period, the Bollinger Band has begun to widen. Therefore, one can start a long position at CMP 1941 based on the technical framework described above. To be on the safe side, it would be better to enter the 1920–1925 level range. Closing and sustaining above 1960 will lead prices in the following days towards 2040–2050 levels. SL may remain as 1895.
TCS
Tata Consultancy Services (TCS) is currently trading at 3222. After experiencing a month-long rally from its lows of 3071.50 to the highs of 3309.70, TCS has recently retraced and settled at 3222. Chart suggests that TCS has established a strong support level in the range of 3180-3200. This indicates that the stock has found considerable buying interest around these levels, providing a potential foundation for further upward movement. The Relative Strength Index (RSI) for TCS is currently at 49, indicating that there is still room for potential upside. Considering the technical factors and market conditions, it appears to be a favorable opportunity to buy TCS at dips until it reaches the 3000 level. The target for this trade would be 3340, with a recommended stop loss set at 3150.
Zomato’s loss has narrowed down in Q4 to Rs 188 crore. How are the charts looking like for the new-age stock? What are the key levels to track?
Zomato Ltd, one of the leading players in the food delivery industry, has seen a rather muted performance in terms of its stock price when compared to its listing price. Zomato’s stock price is currently trading higher than its 20-day and 50-day moving averages, indicating short-term positive momentum. Over the past month, Zomato has witnessed a notable increase in delivery volume, recording a growth of 2.99%. Stock has established support levels around 58-55. These levels indicate a price range where buyers have historically stepped in to support the stock, preventing further decline. On the other hand, resistance levels are placed at 75-80. Short-term prospects in this stock might be appealing to risk-taking investors.