On this chat, he additionally shares high 3 concepts for the week forward. Edited excerpts:
Nifty ended the week about 1% decrease to report sixth consecutive detrimental weekly falls. How bearish are we on the charts?
Nifty recorded its sixth consecutive weekly decline, marking one of many longest stretches of losses on the weekly chart. In its historical past, there have been only a few situations the place the index posted 5 or extra consecutive weekly declines, with the longest being a nine-week fall in early 2001.
On Friday, the Nifty moved southward because it did not maintain above the 50 EMA on the hourly chart, indicating persistent promoting strain. Moreover, the index closed under the essential help degree of 24,400, reinforcing the energy of the bears. Sentiment was already skewed in direction of the bearish aspect, with the index forming a lower-top, lower-bottom sample. The short-term development stays weak, with potential draw back targets at 24,150–24,200 and even 24,000 or decrease. However, this bearish development is prone to reverse if the Nifty manages a decisive transfer above 24,660.
Do you assume that the uptick that we noticed in Nifty PSU Financial institution is sustainable or there might be revenue reserving forward?
Through the week, the Nifty PSU Financial institution Index noticed a gentle uptick because it discovered help on the 21 EMA on the weekly chart for the second consecutive week. Nevertheless, given the sturdy bearish sentiment within the broader Indian fairness market, it’s tough to count on the index to maintain above the 21-week EMA within the coming weeks. A decisive fall under 6,750 might set off a powerful downtrend within the house, whereas a transfer above 7,000 may entice contemporary shopping for curiosity.
The broader market noticed sharper cuts within the week. Do you assume this relative underperformance might proceed as merchants stay cautious amid tariff-related stress?
Because the tariff battle between India and the US intensified, merchants had been fast to dump their leveraged positions in most dangerous midcaps and small caps, resulting in sharp declines within the indices. With uncertainties persisting, additional cuts seem extremely possible within the quick time period. Technically, the index has slipped under the 21 EMA on the weekly timeframe, indicating rising bearish bets within the house. Subsequently, it will likely be sensible to stay cautious within the quick time period.
PG Electroplast shares fell 20% on Friday. Do you see some bottom-fishing alternatives forward?
The inventory has witnessed a pointy decline, breaking down from its latest consolidation part. Furthermore, the autumn was accompanied by excessive volumes. The chart appears extraordinarily weak, and additional draw back seems possible. Exiting on bounces appears a greater technique than trying bottom-fishing.
Give us your high picks for the week forward.
Purchase Medanta Above 1420 | Goal: 1500 | Cease-loss: 1379
The inventory has given a powerful breakout from latest consolidation, indicating rising optimism amongst traders. The RSI indicator is in a bullish crossover and trending upward, supporting optimistic worth momentum. The inventory has been sustaining above the important transferring common on the every day chart. Within the quick time period, the value is prone to stay sturdy with the potential to rise in direction of 1500, whereas help is positioned at 1379.
Purchase CDSL Above 1565 | Goal: 1620 | Cease-loss: 1520
The inventory has damaged out from a consolidation part, elevating the potential of a bullish development within the quick time period. A sustained transfer above 1565 might additional strengthen the optimistic momentum. Within the quick time period, the development is anticipated to stay optimistic with potential to maneuver in direction of 1620, whereas a fall under 1520 may weaken sentiment.
Promote Tata Motors Aug Futures round 635 | Goal: 615 | Cease-loss: 646
The inventory has declined from latest consolidation, triggering bearish sentiment. It’s sustaining under key transferring averages on each the every day and hourly charts, confirming a downtrend. Additional correction appears attainable from the present degree, with potential to succeed in 615 within the quick time period. On the upper aspect, resistance is positioned at 645–646; a break above this vary might reverse the present development.
