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Economic Times
3 days ago
- Business
- Economic Times
Nifty just in pause mode, all-time high possible before Diwali: Rahul Ghose
Markets extended their losing streak for the third consecutive week, with investor sentiment remaining subdued due to a lackluster start to the earnings season and ongoing uncertainty surrounding the US-India trade to the previous week, the benchmark indices showed some strength during the initial three sessions. However, the mood shifted in the latter half, leading both the Nifty and Sensex to end near their weekly lows at 24,968.40 and 81,757.73, respectively. Analyst Rahul Ghose, Founder and CEO, Octanom Tech and interacted with ET Markets regarding the outlook on Nifty and Bank Nifty for the upcoming week. Following are the edited excerpts from his chat: How are you reading the markets right now? Right now, Indian markets are taking a much-needed breather. After a strong run earlier in the year, we've hit a consolidation phase—Nifty and Sensex have been under pressure for a few weeks in a row. There's definitely a sense of caution out there, partly because of mixed global signals and Q1 earnings being in focus. I'd say investors are taking stock and waiting to see which way the wind blows before making big moves. Make no mistake though, that the August month is going to see some big moves in the market in either direction. Are there any global factors that you see that can affect our markets?Definitely—global cues are a big part of the story at the moment. First, persistent FII outflows are weighing on sentiment; foreign investors are pulling back as US rates stay higher for longer, making developed markets a bit more attractive than emerging ones like India for we can't ignore geopolitical tensions and how they've pushed up crude oil prices. Since India is a big importer, that's an immediate worry for both inflation and the rupee. And then there's the recent wave of trade protectionism—we've seen new tariffs and measures from the US and EU, which isn't great news for Indian exporters. All in all, the external environment is a bit choppy. What's your take on the broader Nifty trend, with the index ending lower for the third straight week? The Nifty's certainly feeling the heat after its blistering rally earlier in the year. If you look at the charts, the index is at an inflection point: there's firm resistance at the 25,300 mark and support near the 24500-24800 band. For now, it looks like a consolidation phase, not a reversal. The long-term bullish story remains intact, and I would stick my neck out and say that before Diwali, we might see the Nifty move to all-time high levels; it's just the near term that can see volatile moves. Bank Nifty seemed stronger—how does it look now? Bank Nifty has been the surprising pocket of strength—it's held up better than broader indices so far and has been attracting buyers on dips. Right now, though, it's also showing signs of consolidation. Financial stocks are in a wait-and-watch mode with Q1 results coming in. I'd say Bank Nifty is still on a stronger footing, especially compared to sectors facing margin or demand pressures. Any specific strategies for Nifty and Bank Nifty traders? For Nifty, my advice would be to watch for confirmed breakouts or breakdowns and avoid getting caught in the chop. If we break above 25,255 decisively, there could be quick upside—but keep tight stop-losses at 25,000, as volatility remains Bank Nifty, buying on dips near 56,800–57,000 seems sensible, since the index is drawing buying interest at those levels. But be nimble; set clear exit points because sentiment can change quickly if results underwhelm. FIIs remain net sellers. What do you make of this, and how dependent is the market on FIIs now? Yes, FII outflows are back in focus—over Rs 90,000 crore has left Indian equities this year, and July alone saw a sharp exodus. This is really about global risk-reward equations changing, not anything fundamentally wrong with India. Higher US yields and stretched valuations here mean foreign money is seeking other said, India isn't as dependent on foreign flows as it once was. Domestic investors—both institutional and retail—are much more active and have been buyers on every dip. So, while FIIs can amplify short-term moves, domestic participation is giving our market a lot more resilience. Where did you see a long buildup? What do you recommend among those stocks? We're seeing long positions being built in names like Tata Consumer, Tata Steel, Hindalco, Trent, and M&M—sectors where earnings visibility is strong and thematic tailwinds exist. Out of these, I particularly like Tata Consumer and Trent for accumulation; both have good momentum and structural growth stories. And what about shorting opportunities? Short buildups have shown up in Tech Mahindra, IndusInd Bank, Infosys, SBI Life, and Wipro—mainly IT and a few financials hurt by guidance trims and margin pressure. These could be tactical short candidates, but my advice is to stay nimble here, as oversold bounces are also likely. Let's also discuss Q1 earnings. How has the season turned out so far? Q1 numbers are a bit of a mixed bag. The headline Nifty 50 net profit growth—over 33% YoY—is impressive, but most of that came from margin expansion in consumer and retail names, and a few standout quarters in metals. IT and some global cyclicals have been softer, which is why the market tone is more cautious. What's your view on RIL and Axis Bank after Q1 results? Reliance had a blockbuster quarter, driven by a huge jump in profits from telecom and retail. The Jio 5G rollout and robust retail segment are big positives. The Asian Paints stake sale also gave them a healthy one-off Bank delivered on the operating front, with stable core growth and healthy other income. While the headline profit was down YoY—mainly from base effect and some provisioning—the underlying business looks steady and the outlook remains constructive. How do you see HDFC Bank and ICICI Bank placed now? Both are in a strong spot, barring some short-term volatility. Their loan growth remains robust, digital initiatives are paying off, and asset quality is stable. They're both still 'core portfolio' names for most investors, and any meaningful corrections are likely to draw buyers quickly. Are any sectors outperforming? Yes, consumer durables have been a clear standout—profit growth has exploded, and demand trends look solid. Metals have rebounded thanks to commodity price cycles, and realty stocks are holding up well thanks to strong housing and telecom are also shining, with leaders consolidating market share and improving margins. Can you name any stocks within those sectors? In consumer durables, Titan and Voltas look good. Among metals, Tata Steel and Hindalco are my preferred picks. On the retail side, Trent and DMart are doing everything right, and in telecom, I like Reliance Jio and Bharti Airtel for steady subscriber and revenue growth. Technically too the chart patterns in these suggest buy on dips. Note: In case any specific security/securities are displayed in the responses as examples, these securities are quoted are for illustration only and are not recommendatory. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
29-06-2025
- Business
- Economic Times
Indian markets in mature uptrend, Nifty now eyeing 26k: Rahul Ghose
Markets snapped their five-week-long consolidation trend, driven by improving global cues, easing geopolitical concerns, and a renewed uptick in foreign institutional investor (FII) buying during the latter half of the week. After a tentative start, sentiment improved midweek, leading to broader market participation. Tired of too many ads? Remove Ads How would you characterize the overall market structure in India right now? Are we in a clear uptrend or likely to see a range? Given the recent geopolitical tensions and fluctuations in crude, what technical scenarios would you map out for Nifty? Tired of too many ads? Remove Ads Which key support and resistance levels on the Nifty 50 are you watching, and what chart patterns or indicators validate those levels? Tired of too many ads? Remove Ads What is the FII action indicating right now? Which index seems to perform well? What are the critical technical levels and momentum readings that are giving you confidence? What's the take on the metal index that has really performed well in last few sessions? If there was one stock you had to pick for our readers that you're busy on, which stock would it be? What entry, stop-loss and target levels do you derive from its charts? So, any stocks that you have picked for our traders? Markets snapped their five-week-long consolidation trend, driven by improving global cues, easing geopolitical concerns, and a renewed uptick in foreign institutional investor (FII) buying during the latter half of the week. After a tentative start, sentiment improved midweek, leading to broader market easing of tensions between Iran and Israel helped revive global risk appetite, further supporting the rally. Consequently, benchmark indices ended the week on a firm note, with the Nifty closing at 25,637.80 and the Sensex at 84,058.90—both near their respective weekly this, Analyst Rahul Ghose, Founder and CEO, Octanom Tech and , interacted with ET Markets regarding the outlook on Nifty and Bank Nifty along with an index strategy for the upcoming week. Following are the edited excerpts from his chat:The Indian equity markets are currently in a mature uptrend, though showing signs of consolidation near all-time highs. Nifty 50 has sustained above key breakout levels, but volatility due to global macro events—especially crude price swings and geopolitical tensions—has introduced short-term rangebound behaviour. The broader market remains healthy, with midcaps and smallcaps outperforming, indicating strong underlying has pulled back from recent highs, which is mildly positive for India. However, ongoing US-Iran-Israel friction keeps headline risk the Nifty 50 is in a bullish structure on all major time frames. However, in the short-term, one can see a pullback/correction, considering it is approaching resistance areas on daily and weekly time frame price charts. The 26,000-26,200 level is the level from which Nifty created a strong impulse downmove. With markets currently trading around 25,600 to 25,700 levels, one needs to be cautious and look for buying opportunities only on a the short-term, 25000-24700 is likely to act as a strong support and any dips towards that level will attract buying opportunities on the levels – 25,000-24,700Resistance levels – 26,000 -26,300Bank Nifty has performed well recently—what technical drivers are signaling strength or weakness here?Bank Nifty is showing leadership, which is a healthy sign for the broader market. PSU banks and large private players have contributed technical drivers:Price has sustained above 57,100, turning previous resistance into 20-EMA is acting as a reliable dynamic is on a fresh bullish crossover, and RSI is around 67, suggesting strength but with room before overbought have turned net buyers in the past 8–10 sessions after being cautious through May and early June. Their action indicates renewed confidence, particularly in banking, capital goods, and they're still selectively hedging with index options, which tells us the buying is not yet aggressive, but more measured and Midcap 100 and Nifty Bank are standout Midcap 100 is near its life highs with no negative divergence on weekly RSI, which is currently around 65—strong but not yet in the red Bank has shown a fresh breakout from a 10-month consolidation zone, supported by strong volumes and MACD crossover on daily and weekly is far from being overbought, with levels at metal index has outperformed with strong breadth. The rally is primarily fuelled by positive news related to the Israel-Iran ceasefire and improved global demand Stocks like Tata Steel, Hindalco, and JSW Steel have confirmed breakouts with rising OI (open interest), validating the high-conviction stock right now is Nestle IndiaEntry: Around the Rs 2305 (below recent swing low and 20-day EMA).Target: 2700-2800 in the next 4–6 India, ICICI Bank, Ultratech Cement, & Reliance are looking good to enter as per technical charts. All these stocks are poised for a breakout and have no nearby resistance in the short-term.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
15-06-2025
- Business
- Time of India
Indian markets slip but show resilience even as global geopolitical risks mount: Rahul Ghose
Indian benchmark indices Sensex and Nifty50 closed lower on Friday, mirroring sharp declines across Asian markets as Israel's military strikes on Iran intensified geopolitical tensions in the oil-sensitive Middle East. The BSE Sensex slipped 573 points (0.70%) to settle at 81,118, while the NSE Nifty dropped 169 points (0.68%) to end at 24,718. Earlier in the session, market sentiment had sharply deteriorated, with the Sensex tumbling over 1,337 points to 80,354 and the Nifty hitting an intraday low of 24,473. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo With this, analyst Rahul Ghose , Founder and CEO of Octanom Tech and interacted with ET Markets regarding the outlook on Nifty and Bank Nifty along with an index strategy for the upcoming week. The following are the edited excerpts from his chat: As the Iran-Israel war unfolds, what's your take on the global markets and picture right now? The escalation of the Iran-Israel conflict has significantly heightened volatility across global markets. Following Israel's airstrikes on Iranian military and nuclear facilities, global equities saw sharp declines, with the Dow Jones Industrial Average falling over 600 points and oil prices surging as much as 13%. Investors are moving towards safe-haven assets like gold, which has also seen a notable uptick. The primary concern is the risk of further escalation, especially if the Strait of Hormuz, through which a substantial portion of the world's oil supply transits—faces disruption. This scenario could push oil prices even higher, potentially reaching $120 per barrel if the conflict widens. Live Events What impact do you see on the Indian Markets? Indian equity markets have not been immune to these shocks. The Nifty 50 and Sensex both ended lower on June 13, 2025, with the Nifty closing down 170 points at 24,719 and the Sensex down 574 points at 81,119. The immediate impact has been most pronounced in sectors sensitive to crude oil prices, such as oil marketing companies (OMCs), aviation, paints, and tyres, all of which saw significant declines. The rupee faces depreciation pressure, and inflation risks are rising due to India's heavy reliance on imported oil, over 80% of its crude requirements. But what is important to observe in Indian markets is its resilience. After gapping down almost 300 points, the Indian markets were quick to recovered from the lows of 24520 to close at is because, It is largely believed that if the conflict remains contained and does not drag on, the macroeconomic impact on India could be limited. Retail inflation is currently at a six-year low, but a prolonged conflict and sustained high oil prices could widen the current account deficit and reignite inflationary pressures. What about Nity? Does the general upward view remain in tact? Technically, the charts are not showing any major signs of big correction. Nifty on the weekly as well as time frame is in sideways trading range with a strong support at 24163-23930, & a strong resistance at the lower side unless 23900 breaks, bulls don't have any major reason to worry. However, it is likely that even the upside will also be capped in the sort-term &one would see markets trading in sideways trading range. How about Bank Nifty? Bank Nifty, closely tied to overall economic sentiment and liquidity, is also under pressure. Rising crude prices can lead to higher inflation and interest rates, which typically dampen banking sector performance. Technically, weekly chart of Bank Nifty has closed with a strong engulfing bear candle suggesting selling pressure. However, as this bearish candlestick pattern is neither coming at a resistance level, nor in an overbought territory. One need not worry too much about this engulfing bear candle & infact, expect that this correction in Bank Nifty will be bought into. The gap level of 54,000-53,400 can act as a strong support followed by 51,860-51, probability of Bank Nifty breaking the second level of support is very low. Any sectors you think would specifically suffer from this war? The following sectors are particularly vulnerable to the current geopolitical situation: • Aviation: Heavily impacted by rising ATF (aviation turbine fuel) prices, which constitute a major operating cost. The tragic Air India incident adds to sectoral headwinds. • OMCs (Oil Marketing Companies): Stocks like HPCL, BPCL, and IOC have dropped sharply as higher crude prices squeeze margins. • Paints, Tyres, Adhesives: All are significant consumers of crude oil derivatives and face margin pressure as input costs rise. Technically too, most of the bellwether stocks in these sectors are in a sideways to downtrend, corroborating the fundamental view. What is your take on the defence sector with the global tensions? It is a rising opportunity. Defence stocks are likely to benefit from heightened global tensions. Increased government focus on indigenization, higher budget allocations, and export opportunities for Indian defense manufacturers could drive outperformance in this sector. Geopolitical instability tends to accelerate defense spending, both domestically and globally, providing a tailwind for listed defense companies View on OMCs with such a surge in the Brent Crude? Oil marketing companies are facing a double whammy of rising input costs and potential regulatory pressures to keep retail prices in check. Their margins are under severe strain, as evidenced by the sharp sell-off in their stocks. Unless crude prices stabilize or the government allows full pass-through to consumers, OMCs could continue to underperform. What would be your view on Aviation stocks given the backdrop of war and rising crude prices as well as the tragic Air India incident? Aviation stocks are among the hardest hit. Rising crude prices directly increase fuel costs, pressuring already thin margins. The recent Air India tragedy further dampens sentiment, potentially impacting passenger demand and sector confidence. Considering the magnanimity & scale of the incidence it will take some time for the sector to recoup & regain investor oil prices retreat and geopolitical risks abate, the outlook for aviation remains challenging. Technically, Indigo is showing signs of topping out in the short-term, with multiple spinning top candles on the monthly time frame charts, along with negative divergence in RSI. One can see some profit booking in this space. What sectors are you now focusing on? Given the current environment, from the fundamental & technical standpoint, one can focus on the following sectors: • Defence: Benefiting from rising global and domestic security spending. • IT and Pharma: Traditionally defensive, with global revenue streams and less sensitivity to oil prices. • Domestic Consumption: Select consumer staples and FMCG, which tend to be resilient during periods of global uncertainty. • Energy Producers: Companies like ONGC and Oil India, which benefit from higher crude prices.
Economic Times
15-06-2025
- Business
- Economic Times
Indian markets slip but show resilience even as global geopolitical risks mount: Rahul Ghose
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Indian benchmark indices Sensex and Nifty50 closed lower on Friday, mirroring sharp declines across Asian markets as Israel's military strikes on Iran intensified geopolitical tensions in the oil-sensitive Middle BSE Sensex slipped 573 points (0.70%) to settle at 81,118, while the NSE Nifty dropped 169 points (0.68%) to end at 24,718. Earlier in the session, market sentiment had sharply deteriorated, with the Sensex tumbling over 1,337 points to 80,354 and the Nifty hitting an intraday low of 24, this, analyst Rahul Ghose , Founder and CEO of Octanom Tech and interacted with ET Markets regarding the outlook on Nifty and Bank Nifty along with an index strategy for the upcoming week. The following are the edited excerpts from his chat:The escalation of the Iran-Israel conflict has significantly heightened volatility across global markets. Following Israel's airstrikes on Iranian military and nuclear facilities, global equities saw sharp declines, with the Dow Jones Industrial Average falling over 600 points and oil prices surging as much as 13%. Investors are moving towards safe-haven assets like gold, which has also seen a notable uptick. The primary concern is the risk of further escalation, especially if the Strait of Hormuz, through which asubstantial portion of the world's oil supply transits—faces disruption. This scenario could push oil prices even higher, potentially reaching $120 per barrel if the conflict equity markets have not been immune to these shocks. The Nifty 50 and Sensex both ended lower on June 13, 2025, with the Nifty closing down 170 points at 24,719 and the Sensex down 574 points at 81,119. The immediate impact has been most pronounced in sectors sensitive to crude oil prices, such as oil marketing companies (OMCs), aviation, paints, and tyres, all of which saw significant declines. The rupee faces depreciation pressure, and inflation risks are rising due to India's heavy reliance on imported oil, over 80% of its crude what is important to observe in Indian markets is its resilience. After gapping down almost 300 points, the Indian markets were quick to recovered from the lows of 24520 to close at is because, It is largely believed that if the conflict remains contained and does not drag on, the macroeconomic impact on India could be inflation is currently at a six-year low, but a prolonged conflict and sustained high oil prices could widen the current account deficit and reignite inflationary the charts are not showing any major signs of big correction. Nifty on the weekly as well as time frame is in sideways trading range with a strong support at 24163-23930, & a strong resistance at the lower side unless 23900 breaks, bulls don't have any major reason to it is likely that even the upside will also be capped in the sort-term &one would see markets trading in sideways trading Nifty, closely tied to overall economic sentiment and liquidity, is also under pressure. Rising crude prices can lead to higher inflation and interest rates, which typically dampen banking sector performance. Technically, weekly chart of Bank Nifty has closed with a strong engulfing bear candle suggesting selling pressure. However, as this bearish candlestick pattern is neither coming at a resistance level, nor in an overbought territory. One need not worry too much about this engulfing bearcandle & infact, expect that this correction in Bank Nifty will be bought into. The gap level of 54,000-53,400 can act as a strong support followed by 51,860-51, probability of Bank Nifty breaking the second level of support is very following sectors are particularly vulnerable to the current geopolitical situation:• Aviation: Heavily impacted by rising ATF (aviation turbine fuel) prices, which constitute a majoroperating cost. The tragic Air India incident adds to sectoral headwinds.• OMCs (Oil Marketing Companies): Stocks like HPCL, BPCL, and IOC have dropped sharply ashigher crude prices squeeze margins.• Paints, Tyres, Adhesives: All are significant consumers of crude oil derivatives and face margin pressure as input costs too, most of the bellwether stocks in these sectors are in a sideways to downtrend, corroborating the fundamental is a rising stocks are likely to benefit from heightened global tensions. Increased government focus on indigenization, higher budget allocations, and export opportunities for Indian defense manufacturers could drive outperformance in this sector. Geopolitical instability tends to accelerate defense spending, both domestically and globally, providing a tailwind for listed defense companiesOil marketing companies are facing a double whammy of rising input costs and potential regulatory pressures to keep retail prices in check. Their margins are under severe strain, as evidenced by the sharp sell-off in their stocks. Unless crude prices stabilize or the government allows full pass-through to consumers, OMCs could continue to stocks are among the hardest hit. Rising crude prices directly increase fuel costs, pressuring already thin margins. The recent Air India tragedy further dampens sentiment, potentially impacting passenger demand and sector confidence. Considering the magnanimity & scale of the incidence it will take some time for the sector to recoup & regain investor oil prices retreat and geopolitical risks abate, the outlook for aviation remains challenging. Technically, Indigo is showing signs of topping out in the short-term, with multiple spinning top candles on the monthly time frame charts, along with negative divergence in RSI. One can see some profit booking in this the current environment, from the fundamental & technical standpoint, one can focus on the following sectors:• Defence: Benefiting from rising global and domestic security spending.• IT and Pharma: Traditionally defensive, with global revenue streams and less sensitivity to oil prices.• Domestic Consumption: Select consumer staples and FMCG, which tend to be resilient during periods ofglobal uncertainty.• Energy Producers: Companies like ONGC and Oil India, which benefit from higher crude prices.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
31-05-2025
- Business
- Economic Times
Nifty awaits trigger as June series kicks off with cautious tone, 25,100 key level: Rahul Ghose
Markets ended the week on a cautious note, marking the second consecutive week of consolidation. This subdued performance came amid ongoing global trade tensions and anticipation surrounding domestic policy developments. ADVERTISEMENT The benchmark indices, the Sensex and the Nifty, witnessed notable volatility through the week, eventually closing lower as investors reacted to uncertainties over U.S. tariff developments. Analyst Rahul Ghose, Founder and CEO, Octanom Tech and interacted with ET Markets regarding the outlook on Nifty and Bank Nifty along with an index strategy for the upcoming series. The following are the edited excerpts from his chat: The Nifty 50 index is currently in a consolidation phase, trading between 24,462 and 25,116, reflecting market indecision. The series of Dojis and spinning tops on the daily and weekly time frame further suggests that markets are likely to stay range-bound in the short to medium term. Key support resides at 24,164-23,935, while resistance is seen at 25,070 to 25,150. The June F&O series begins with elevated open interest (1.26 crore shares) but reduced FII long positions compared to previous months. Historically, June has been favourable, with three positive returns in the last four years. Nifty can head to 25,740, once we see two closings above the 25,100 mark, until then one should only look to be in hedged positions. Bank Nifty is consolidating between 53,500 and 56,000 with a series of indecisive candles. A sustained move above 56,100 (which is the high of the bearish engulfing candle) could trigger a rally toward 56,700. Bank Nifty looks likely to break out. ADVERTISEMENT FIIs reduced Nifty long positions to half of April/May levels, indicating caution. However, their net buying in April-May (Rs 25,841 crore) and focus on the RBI policy (June 6) and monsoon progress suggest potential catalysts for renewed momentum. ADVERTISEMENT The index's rangebound action (24,160–25,100) favours stock-specific opportunities, particularly in sectors like IT and pharma, showing relative strength. Index traders should wait for a confirmed breakout/breakdown. A move below 23,900 levels will open the opportunity for further downside where whereas a move above 25,100 levels would lead to an upside. The bigger time frame price action suggests that, probability of Nifty moving towards the upside is much higher than the downside. ADVERTISEMENT RIL is forming a symmetrical triangle on the daily chart and is currently testing the upper boundary near Rs 1,440. A breakout above Rs 1,440 with volume confirmation could lead to a move toward Rs 1,530-1,550 levels. The stock is holding above its 50-DMA and showing positive RSI divergence on the hourly chart — a sign of latent strength. Short-term support lies at Rs 1,396-1,390 like RIL, HDFC Bank is trading in a symmetrical triangle formation. A break above 1980 levels with good volumes could lead the stock towards newer highs. Rs 1,980 happens to be a short-term resistance for the stock with a strong engulfing bear candle. As Bank Nifty is expected to remain bullish, HDFC Bank is likely to break out sooner rather than later. ADVERTISEMENT ICICI Bank is slightly overstretched on the monthly & quarterly time frames. The RSI levels on a monthly basis are around 75, and quarterly, around 85. Since structurally it is in a strong uptrend, one should look to enter on a pullback rather than impulsively jumping around the CMP. Rs 1,300-1,320 area would be a good level to stock is in a strong uptrend on all time frames. However, considering the vertical rally in the stock recently, buying in a staggered manner would be a better approach. The bigger time frame charts of Suzlon are bullish and the stock could continue to trade with a strong momentum. The weekly and monthly RSI levels of Suzlon are above 60, suggesting a strong uptrend. Friday closed with a Gravestone DOJI candle after a strong gap up, signalling the stock could pull back in the short term. A pullback towards 58-60 would be a good opportunity for re-entry. Ola continues to make lower tops and lower bottoms on a daily and weekly time frame. The buying structure is clearly not visible on price charts. Such stocks are better entered when the stock breaks out post some sort of base formation, like it happened in Nyka or Zomato. Currently, this is not visible in Ola. Technically, Mazdock is extremely strong and all pullbacks will be potential buying opportunities. With the recent rally, the indicators have obviously entered an overbought territory, which means traders should only look to enter such stocks on a pullback. On charts,a pullback to the levels of Rs 2,800-2,900 would be a good point to enter. This level has a confluence with the 50 DMA & offers a good reward to risk ratio. Bajaj Auto is currently trading around the monthly 20 EMA & has been consolidating around that level for 2-3 months. The stock might continue to hover around this range before moving up again. Overall, technically, the stock looks positive. Among the sectors, Nifty Bank, Nifty IT and Nifty metals look positive on charts, whereas Nifty FMCG & Nifty Auto look negative. Nifty Auto and FMCG are showing signs of consolidation on monthly charts & one needs to be very selective while picking stocks in these sectors. Nifty IT & Nifty metals look to be in strong momentum, trading close to their key averages. Any pullbacks would be an opportunity to IT Picks: Largecaps (Infosys, TCS) for stability; midcaps (Coforge, Persistent) for breakout Bank & Reliance, both heavyweights, look to be on the verge of a breakout on the daily charts. Cummins looks to be a strong momentum play and has huge potential in the short to medium term. The stock has just come out of a base formation on weekly & is showing signs of moving towards Rs 3,700-4,000 levels in the short-term Nifty: Trade the range (24,400–25,100) with stops. Go long above 25,100& short below 23900 levels. Sector – Overweight on Banking & Midcap IT, Underweight on FMCG. Trade with tight stop losses. Be willing to change stance from bullish to bearish and vice-versa if the market breaks key levels on either side (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)
