Analysts say the Nifty must stay over 17,000 to continue to rise.

  • Dec. 27, 2021, 11:53 a.m.

Where is the Nifty headed?
Nifty lately had a pullback and recouped some of the losses amidst volatility and controlled to close with a marginal advantage. It fashioned a bullish candle at the weekly scale with an extended decrease shadow indicating buying was seen at declines, however hurdles are intact at higher zones. Now it has to maintain above 17,000 zones, for an up pass toward 17,200 and 17,350 zones whereas support may be visible at 16,900 and sixteen,800 zones. Till the Bank Nifty holds under 35,000, weak spot will be seen in the direction of 34,500 and 34,350 zones whereas hurdles can be seen at 35,350 and 35,500 zones.

What ought to investors do?
Index investors can initiate a Bear Put Spread by using shopping for 17,000 Put and promoting sixteen,800 Put with a top class cost of around 64 factors to play the downside pass. Stock-unique high-quality setup visible in Coforge, HCL Tech and L&T Infotech at the same time as weak point could preserve in banking and monetary shares 

Where is the Nifty headed?
Nifty has been witnessing a lack of faster retracement signifying prolonged consolidation inside the broader variety of 17,200-sixteen,six hundred amid wonderful bias. We believe, simplest a decisive near above 17,two hundred backed by way of improvement in market breadth might lead to an extension of the pullback toward 17,500 within the coming weeks, else extended consolidation amid stock precise movement might assist the index form a better base and progressively set the degree for subsequent leg of the up flow.

What ought to investors do?
Nifty has approached maturity of price-time sensible correction. Price-sensible, the index has maintained the rhythm of now not correcting greater than 11% on three activities on the grounds that May 2020. Time-sensible, it has arrested secondary correction inside nine weeks. In the modern state of affairs, pricewise Nifty has corrected eleven.8% and time-smart completed nine weeks corrective phase, thereby supplying favourable danger-praise over the medium time period. The adulthood of pricetime wise correction makes us confident that Nifty would maintain remaining week’s panic low of 16,400 in the close to time period. Any dip from right here on ought to not be construed as bad rather dip must be capitalised to build up best shares in a staggered way. Sectorally, capital items, IT, telecom, real property are predicted to bear their outperformance even as automobile and metals have a beneficial chance-praise setup. On the inventory front, we continue to be constructive on Reliance, TCS, Tata Motors, Siemens with 5% upside even as inside the mid-cap space we choose L&T Infotech, Gateway Distriparks, Tata Communication, Minda Corp, Brigade for a 7-8% upside 

Where is the Nifty headed?
Nifty may also gyrate round 17,000 for the coming week. Firstly, less market participation because of holidays and secondly, options buyers have placed themselves on the short aspect of the 17,000 straddle indicating a variety-sure movement for Nifty with a focus round 17,000. Even if Nifty is going 200-300 factors below or above from 17,000 it gained’t exchange plenty from a directional attitude.

What ought to traders do?
In the current situation, adopting an evergreen stock-specific method might also give fruitful consequences. Options traders can alternate in straddle and strangle at the same time as positional investors have to deal with IT, pharma, electricity and selective names inside the FMCG area. Bank Nifty chart shows this area can be prevented for some greater time to come back.

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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