Nifty may trade in 11,600-12,000 range for next 3-4 weeks - 19-04-2019

-

Nifty may trade in 11,600-12,000 range for next 3-4 weeks: Axis Securities, Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy, says Rajesh Palviya of Axis Securities.

 Midcap index is expected to move towards 16,000-16,500 and smallcap index is expected to move towards 15,700-16,200 levels. Overall, mid and smallcaps are expected to outperform frontliners in short to medium term, Rajesh Palviya, Head Technical & Derivatives Research at Axis Securities.

Q&A With Expert:-

 Q: Nifty has been rising gradually but not getting enough strength to move above 11,800 levels. What is your reading?

 A: Nifty managed break out of past couple of weeks' range of 11,760-11,560. The upward breakout indicates bullish sentiments in short to medium term. The index is moving in a Higher Top and Higher Bottom formation on the daily as well as on weekly chart indicating sustained up trend.
The chart pattern breakout suggests that if Nifty sustains above 11,760 level it would witness buying which would lead the index towards 11,850-12,000 levels. On the downside, an immediate crucial support zone is placed around 11,700-11,630 and any violation of this would witness profit booking which would take the index towards 11,550-11,500 levels.
At current levels, Nifty continues to hold and sustain above its 20-day SMA (11,562) support hence, it remains a crucial level to watch for. Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy.
For the upcoming 3-4 weeks, we expect Nifty to trade in the range of 12,000-11,600 with positive bias. The daily, weekly and monthly strength indicator RSI and momentum oscillator Stochastic both are in bullish mode which supports upside rally to continue ahead.
Q: Bank Nifty has been the biggest gainer in the current rally. Do you expect the rally to continue?
A: BankNifty started the week on positive note and managed to give breakout of last eight day consolidation range of 29,700-30,200 on closing basis.
The index is moving in a Higher Top and Higher Bottom formation on the daily as well as on weekly chart representing medium term bullish trend. The chart pattern suggests that if Bank Nifty continues to sustain above 30,500 level it would witness buying which would lead the index towards 30850-31000-31200 levels. On the flip side, immediate support zone is placed around 30200 levels.
Any violation of this support would witness profit booking which would take the index towards 30000-29800 levels. On the daily chart, Bank Nifty continue to hold and sustain above its 20 day SMA (29990) indicating positive bias in the short term.
Q: Can mid and smallcaps continue to outpace frontliners in 2019?
A: By referring to midcap weekly chart, this index has observed reversal in trend as it has formed a “W” trend reversal pattern formation which signifies strength and increased participation at lower levels. This index has formed a firm base around 13,800 levels which remains a crucial demand zone. From current levels, this index is expected to move towards 16,000-16,500 levels in short to medium term.
Smallcap index has witnessed strong breakout from its six months multiple resistance zone of 14,800 on closing basis which confirms trend reversal on short to medium term charts. From current levels, this index is expected to move towards 15,700-16,200 levels in short to medium term.
Overall, mid and smallcaps are expected to outperform frontliners in short/medium term.
Q: Tata Motors has run up a lot in the last few sessions. Do you expect further upside?
A: Tata Motors managed to give breakout of last five month consolidation range Rs 165-200. On the daily chart, stock is now trading above all its important (50,100,200 DMA) long term moving averages and 50 DMA has given upward crossover to 100 DMA which indicates stock is gaining strength on long term charts.
Chart pattern suggests if stock continues to hold above Rs 230 then, we see more upside towards Rs 245-250 in near term where stock may face some supply pressure. In April expiry, the stock is currently up 37% while there was a sustainable increase in open interest to the tune of 26%, indicating Long Build Up witnessed in the stock, and still the trend continues.
Range of the stock can be determined around Rs 220-250 until major changes of data front being witness, overall stock is in positive territory and trend is intact.
For Stock Recommendation Contact Us-9109911538

Comments

Post a Comment

Popular posts from this blog

Stocks In News 28-03-2019

-
Stocks in the news: Godrej Agrovet, NBCC, Sheela Foam, Bharat Financial, Unichem Labs, Sheela Foam | Bharat Financial Inclusion | Unichem Laboratories | Ruby Mills and Marathon Nextgen Realty are stocks which are in the news today. Here are stocks that are in the news today: Grasim Industries : Company allots 5,000, 7.65% fully-paid NCDs of Rs 10 lakh each aggregating to Rs 500 crore. Texmo Pipes and Products : Board allotted 13 lakh equity shares at a price of Rs 23.20 per share, aggregating to Rs 3.01 crore to Shree Padmavati Irrigations LLP, promoter group entity on preferential basis. Nelco  board approved sale of company's entire Investment of 12.30% stake in Nelito Systems at a consideration of Rs.6.77 crore to DTS Corporation, Japan Ador Welding : CARE downgraded rating on long term bank facilities to AA— from AA with outlook stable. Mahindra & Mahindra Financial Services : Board approved the acquisition of 1,18,91,511 equity shares of Mahindra Rural Housi...
Read more

Trading Some Rule for Share Market.

-
Image
Trading Rules 1. Always apply stop loss, never increase the level of stop loss. If you ignore the stop loss then the market will ignore you the next day. Never put more than 5-10% of your capital in the market | 2. Always maintain your portfolio. 3. Remember, not all shares can make a profit. 4. Intraday investment is like a full-day job, you cannot do it on a part-time basis. 5. It is very important to set your target, just as it is important to book profits on time, in the same way, it is more important to book losses on time. 6. Trade on shares with high volumes for intraday trading. 7. Only invest as much money in the market as you can withstand losses. 8. Do not compete in market trends but follow market trends 9. A small profit is sufficient. Remember that 1% profit of the day will be 300% profit of the year. 10. Instead of being nervous and emotional, work with discipline and patience. 11-12. Never let the profit go in the loss. 13. Take complete in...
Read more

stock market news 24.09.2018

-
Image
D-Street erases some losses, Sensex down 400 points; Nifty around 11,000 Automobiles, banks, metals, pharma, and FMCG are all trading lower. Nifty Midcap index is down 3 percent AVIATION DATA  According to reports on CNBC-TV18, the domestic air passenger traffic growth has dipped to 17.2 percent against 20.8 percent month on month. Jet Airways reported passenger load factor (PLF) of 82 percent against 83.9 percent in the previous month. Meanwhile, Spicejet’s PLF was reported at 93.6 percent. IndiGo reported PLFs of 82.8 percent, a fall from 88.7 percent seen during the previous month. The channel also reported market share data for aviation companies. Air India: 12.7 percent against 12.4 percent in the previous month. IndiGo: 41.9 percent against 42.1 percent in the previous month. SpiceJet: 12.4 percent against 12. 3 percent in the previous month. Jet Airways: 13.8 percent against 13.6 percent in the previous month. GoAir: Unchanged at 8.9 perce...
Read more