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Economic Times
30-06-2025
- Business
- Economic Times
Nifty ready to scale new highs on bullish mood: Analysts
The market is expected to maintain its bullish momentum this week, having broken out of a consolidation phase. According to technical analysts, the Nifty could gradually move towards its all-time high levels of 26,000–26,200, with initial resistance seen at 25,800. The 25,200 zone is now likely to act as a support base. ADVERTISEMENT RAJESH PALVIYA HEAD – TECHNICAL AND DERIVATIVES RESEARCH, AXIS SECURITIES Where is Nifty Headed This Week? The Nifty closed above the previous week's peak, indicating powerful upward momentum. Having broken free from its earlier trading range of 24,400–25,200, the index's recent close above 25,200 suggests potential for further advances. Nifty could soon test its record high of 26,277, and if it surpasses 25,800, we may see fresh buying interest that could drive it toward the 26,000–26,250 range. On the downside, a drop below 25,500 could result in retreating to 25,200–25,000 zone. The consistent rise in both daily and weekly RSI, remaining solidly above key thresholds, further emphasises the prevailing bullish sentiment. Trading Strategies for the Week Traders can initiate a moderately bullish strategy with reduced premium outflow and a lower breakeven point called a 'Bull Call Spread' of 3rd July weekly expiry. In this net delta long strategy, traders need to buy one lot of the 25,700 Call strike at Rs 117 and simultaneously sell one lot of the 26,000 Call strike at Rs 29, so that the net outflow or maximum loss will be restricted to up to Rs 6,600. Nifty, on expiry, if it closes above 25,788, the strategy will start making a profit as it's the break-even point for the strategy. However, as the risk is limited, so is the profit. The maximum gains will be restricted to Rs 15,900, because the gains of a long 25,700 strike Call will be offset by the sold 26,000 strike Call if Nifty closes above 26,000 on expiry. Investors can focus on stocks like Bajaj Auto, Reliance, Hindustan Petroleum, Titan, Eicher Motors, Sun Pharma, Hindalco, and IndusInd Bank for potential opportunities. ADVERTISEMENT ROHAN SHAH TECHNICAL ANALYST, ASIT C. MEHTA INVESTMENT Where is Nifty Headed This Week? ADVERTISEMENT Nifty finally broke out of the consolidation range of 24,400–25,200, which persisted for over a month. The recent rally was driven by heavyweights such as the Banking index, Reliance Industries, and Bharti Airtel, supported by broad market participation. Going ahead, we expect the index to challenge its previous record high levels and advance towards the 26,000–26,200 zone. On the downside, 25,200 now acts as an important intermediate support, followed by 24,800. Trading Strategies for the Week We remain optimistic on power stocks like Power Grid and Tata Power. The FMCG index also looks good as it has rebounded from crucial support; Hindustan Unilever and Nestlé are among the preferred picks. Realty stocks, after decent moves, are now showing signs of profi t booking. Select stocks like Bharat Forge, Hero MotoCorp, and Torrent Pharma are exhibiting strength on the charts and should be kept on the watchlist for trading ADVERTISEMENT AJIT MISHRA SVP – RESEARCH, RELIGARE BROKING Where is Nifty Headed in the Coming Week? With the Nifty ending its consolidation phase through a decisive breakout, we now expect a gradual move toward the all-time high of 26,277. However, the gap area around 25,800 could cause a temporary pause. In the event of a pullback, the 24,800–25,200 zone—which previously acted as resistance—is likely to offer strong support. ADVERTISEMENT Trading Strategies for the Week Participants are advised to maintain a 'buy-on-dips' strategy with an emphasis on selective stock picking. We continue to favour rate-sensitive sectors such as banking, financials, auto, and real estate, while recommending a cautious and selective stance toward other sectors. Based on the current technical setup, the following stocks can be considered for short-term trading opportunities: Apollo Hospitals, Shriram Finance, UNO Minda, Hero MotoCorp, Hindustan Petroleum, ICICI Prudential Life, InterGlobe Aviation, Jubilant FoodWorks, Laurus Labs, UltraTech Cement, and Vedanta
Economic Times
17-06-2025
- Business
- Economic Times
Deploy Bull Call Spread in Apollo Hospitals for benefits from bullish view
Apollo Hospitals shares are currently showing a bullish pennant pattern. Synopsis Apollo Hospitals shares are currently trading at Rs 7,114. The stock shows a bullish pennant pattern. This suggests a possible upward movement. Analysts recommend a Bull Call Spread. This strategy aims to profit from the expected rise. Support is seen at Rs 7,000. A move above Rs 7,114 could fuel further gains. The RSI indicates strengthening momentum. The shares of Apollo Hospitals were trading at Rs 7,114 on Tuesday, consolidating after a strong bounce from lower levels, indicating a healthy pause within an ongoing uptrend. ADVERTISEMENT The stock has recently formed a Bullish Pennant pattern on the daily chart—a continuation pattern—and has now given a decisive breakout above this formation. 'This price action signals the potential for further upside, provided the stock sustains above the breakout zone, supported by continued buying interest,' said Hardik Matalia, Derivatives Analyst at Choice Broking. Technically, the stock is maintaining a strong structure as it comfortably trades above all its key moving averages—short-term, medium-term, and long-term EMAs—indicating a stable and upward trend across multiple timeframes.'This alignment adds strength to the ongoing bullish momentum and reflects improving price stability,' Matalia added. ADVERTISEMENT The Relative Strength Index (RSI) is currently at 62.11, trending upward, which further confirms the strengthening momentum. The RSI's trajectory suggests increasing bullish pressure, enhancing the conviction for a continued up move as buyers remain a derivatives perspective, the data supports the bullish setup. The highest Call Open Interest (OI) is placed at Rs 7,100, and with the stock now trading above this level, any further rise could trigger short covering, adding fuel to the rally. ADVERTISEMENT On the flip side, the highest Put OI is at Rs 7,000, which now serves as a strong support zone, providing a cushion against potential downside believes that if the stock manages to sustain above the breakout level, the stock could gain upward momentum in the coming sessions, potentially aiming for higher levels in the medium term. ADVERTISEMENT 'A sustained move above Rs 7,114 will confirm trend continuation and could attract further buying interest, reinforcing the bullish outlook,' he this, Hardik Matalia suggests deploying a Bull Call Spread in Apollo Hospitals for potential gains from the bullish momentum. Bull Call Spread ADVERTISEMENT Traders may deploy a Bull Call Spread to monetize gains from a potential market rebound. It involves buying and selling call options with the same expiration but different strike prices. The purchased call is typically in-the-money (ITM) or at-the-money (ATM), while the sold call is out-of-the-money (OTM). This strategy results in a net debit for the trader, as the cost of the ITM/ATM call is partially offset by the cash flow generated from shorting the OTM call.(Prices as of June 16)Below is the payoff graph of the strategy:(Source: Choice Broking) (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
