Edited excerpts from a chat:
Nifty ended the week round 1.3% increased, however do you suppose Friday’s intra-day volatility alerts that bulls are weakening? Or is 25,000 nonetheless potential subsequent week?
Normal deviation research are certainly pointing to 25,000 and past. Friday appeared extra unstable as a result of the sturdy up-move early within the day—marking a brand new 7-day excessive—did not maintain amid rejection trades. Nevertheless, the shut close to 24,350 mirrored that of the previous six periods. This permits us to retain upside expectations for Monday’s begin. That mentioned, any signal of slipping beneath 24,280 may point out rising weak point, although a break beneath 23,850 could be required to validate a transfer towards 23,670–23,460. The chances of such a decline appear low at this level, however we stay cautious.
Defence shares have been among the many largest winners amid rising tensions with Pakistan. Will the rally maintain?
Defence shares, which have been on the rise since final week, confirmed indicators of weak point because the week progressed, with the common RSI topping out at 68. The slowdown in momentum suggests revenue reserving might proceed early subsequent week. Nevertheless, the weekly common RSI close to 60 nonetheless helps a bullish setup. The perfect technique could be to enter on anticipated pullbacks. Shares like Information Patterns, Mazagon Dock, GRSE, HAL, BDL, and Cochin Shipyard might be good bets on dips. BEL might outperform.
Sonata Software program was the most important weekly gainer amongst BSE500 shares. Do you anticipate revenue reserving forward?
A multi-week consolidation breakout alerts potential for the uptrend to increase towards 490–530. The query just isn’t whether or not to re-enter, however the place. Friday’s shut beneath Thursday’s low signifies exhaustion within the near-term uptrend. We want shopping for on dips with a stop-loss beneath 370. Nevertheless, if the dips are reduce brief and the inventory swiftly closes above 456, threat capital could also be allotted.
Whereas the Nifty has recovered half its losses for the 12 months, the Nifty Smallcap 250 index continues to be struggling. What do the charts recommend?
On Friday, 62.4% of small-cap constituents closed above their 50-day SMA, in comparison with 70.8% the earlier Friday. Comparable declines have been seen with the 20-day SMA: 47.6% versus 66.8%. This highlights the index’s ongoing battle. The weekly chart exhibits a night star sample, reflecting weak point, however the look of a doji final week suggests cautious discount searching. An extra 2–3% dip may enhance threat urge for food.
Prime buying and selling concepts for the week:
Sumitomo Chemical (SUMICHEM) – LTP: Rs 524
View: Purchase
Goal: Rs 565
Cease-loss: Rs 493
After reversing from April highs, the inventory discovered patrons close to the horizontal help zone of Rs 500, from the place a reversal is underway. The MACD histogram alerts exhaustion, and the SMI oscillator is nearing a crossover above zero, indicating a bullish shift. Anticipate a transfer to Rs 565 within the coming weeks. Keep a stop-loss beneath Rs 493.
International Well being (MEDANTA) – LTP: Rs 1,202
View: Purchase
Goal: Rs 1,270
Cease-loss: Rs 1,164
After a decline since mid-April, the inventory has fashioned a Dragonfly Doji on the every day chart, accompanied by indicators of MACD exhaustion—hinting at a possible reversal. We anticipate a transfer towards Rs 1,270 within the subsequent few days. Keep a stop-loss beneath Rs 1,164.
