It has been an extremely bullish close for Nifty today, and it has managed to breach both previous resistances of 16,000 and 16,300 over the past two weeks. We expect this trend to continue to the next week. What is most promising is that this rally is led by stocks across most sectors. Nifty has strong support in 16,330 and 16,280 range and we can expect Nifty to test the 16,700 levels over the next week.
Bank Nifty has been consolidating within a very tight and narrow range in the week that has gone by, we expect it to breakout above its resistance around 36200 levels, we can see a bullish sentiment buildup on the charts since the past 3 days. We can expect Bank Nifty to touch 37000 over the course of the next week. Bank Nifty has good support around the 35850 & 35700 levels
Nifty FMCG
The FMCG sector has been consolidating for a while but we maintain a bullish bias for this sector as the charts suggest good accumulation being built, today's close has been very encouraging. We expect this index to breach the 37000 levels which is also its all time high. There is very good support at the 36000 levels.
NIFTY IT
The IT sector has been bullish since 2020 now and we see no reason or any sign for the trend to change course. We maintain our bullish stance on this index for the upcoming week and expect it to test its all time high of 32900 levels. The nearest support zone for this index is around the 31800 levels should there be a retracement on the cards
NIFTY Pharma & Nifty Auto
Just like last week, we maintain a mildly bearish stance on both these indices as the charts look weak. Should the 13800 levels on the pharma index or the 10000 levels break down, we should see further downside in both these sectors
Derivative Outlook
Nifty current month future closed with a discount of 10 points to its spot. Next month's future is trading at a premium of 20 points.
We saw open interest addition of nearly 7.1 percent in Nifty and considering the price action it clearly hints strong buying during the week.
Long Formation:
The following stocks saw OI build up with a corresponding increase in price, suggesting a bullish sentiment.
Short Formation:
The following stocks saw OI build up with a corresponding decrease in price, suggesting a bearish sentiment
Top 5 recommendations for the next week
HDFC
HDFC has broken its resistance of 2660 levels and is poised to move higher in the coming week.
Titan Industries
The stock has breached its all time high at the 1780 level which was also a significant resistance, we feel that the stock should move significantly higher over the coming weeks.
Jubilant Foodworks
The stock is trading in a tight trading range and we expect the same to breakout over the coming week, this would be a good buying opportunity and traders could see a good upside on this counter
Mindtree
Mindtree has been very bullish over the past 12 months and is around its all time high, we believe this stock could break out and breach these levels which could prove to be good bet for traders.
Godrej Properties
Godrej Properties is another high conviction idea for us over the coming week, it has not only taken the support at its 30 day moving average but is also at a crucial support zone.
(Gaurav Udani- the founder and CEO, ThincRedBlu, boutique brokerage firm)
