By Mr. Ajit Mishra
Markets have been maintaining a positive tone and inching gradually towards their record high. The majority of the sectors are witnessing rotational buying, which is not only keeping the participants busy but also capping the downside in the index amid consolidation. Besides, the broader indices are also attracting noticeable interest and trading at their record-high levels.
This week is a holiday-shortened one and we expect volatility to remain high due to the scheduled expiry of November month derivatives contracts. Apart from domestic factors, we are closely eyeing the performance of the US markets for cues and indications are in favor of the prevailing up move to continue. We are expecting the Dow Jones Industrial Average (DJIA) to inch toward the previous swing high i.e. 35,679 and the 34,800-35,000 zone would restrict the decline in case of any profit taking.
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We have highlighted the key levels for both Nifty and the banking index along with a list of stocks that participants can consider for trading positions based on the market trend.
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Nifty (CMP: 19,889.70) – Nifty has finally surpassed the hurdle at 19850 and now we expect the index to inch toward a new high. Needless to say, the quantum of rise would depend upon the performance of the banking, which has also reached closer to its immediate hurdle. We reiterate our view to continue with the “buy on dips” approach and prefer stocks with relatively higher strength for fresh buying. On the downside, we expect the 19,400-19,600 zone to offer support in case the trend reverses.
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Bank Nifty (CMP: 43,891.25) – Though the banking index is also trying to recover its lost ground, we suggest focusing on the other sectors for long trades until it decisively reclaims the 44,100 mark. A firm close above that hurdle could help the index to inch towards the 44,700-45,200 zone. In case of any dip, the 42.800-43,250 zone would offer the cushion.
Stocks to Watch Come from Sports betting site VPbet
Bullish- Apollotyre, Bajaj Finserve, BHEL, Hindalco, Hind Copper, Hind Petro, Indigo, Tata Power
Bearish- Biocon, Bandhan Bank, Crompton, ITC, Lauruslabs, Voltas
(Ajit Mishra, SVP- Technical Research, Religare Broking. Views expressed are author’s own. Please consult your financial advisor before investing.)