After a strong bullish week, this week Nifty traded in a small range. It consolidated between 17,430 and 17,250.
This week Nifty IT, Nifty Auto and Nifty Bank gave a mild correction, while Nifty FMGC and Nifty PSE close mildly positive.
The following stocks in Nifty were the largest gainers: Grasim, Reliance , Coal India, Eicher Motors and Titan Company. Nifty is currently in its Impulse wave as per Elliott wave theory and will continue making new highs for a few weeks from here.
Nifty Outlook
Nifty traded in a sideways trend on Friday (September 9). It took support around 17,300 where it saw some buying and then closed around yesterdays close at 17,357. 17,250 and 17,300 will continue acting as strong support levels for Nifty. On a closing above 17,450 , Nifty may test levels of 17,500 and 17,550. Overall the trend in Nifty remains bullish and we may see new all-time high in the next few trading sessions.
Nifty 50 |
Nifty FMCG
The FMCG sector has been going from strength to strength over the past 2-3 weeks now, it shows how investors are flocking to this sector in times of stretched valuations and so much uncertainty. Most companies in this sector have done very well and moreover are grounded in great fundamentals, we expect the bullish trend to continue in this sector.
Nifty FMCG |
Nifty IT |
Just like the FMCG sector, IT too has benefited greatly from the ongoing pandemic and has proven to be a safe haven of sorts for investors, on the bed of great fundamentals and clear guided growth trajectories of companies, this sector is poised to do really well over the coming weeks.
NIFTY Pharma & Nifty Auto
Just like last week, we maintain a mildly bearish stance on both these indices as the charts look weak.
Derivative Outlook
Nifty current month future closed with a premium of 2 points to its spot. Next month's future is trading at a premium of 28 points.
We saw open interest addition of nearly 1.20% 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.
Long formation |
Short Formation
The following stocks saw OI build up with a corresponding decrease in price, suggesting a bearish sentiment.
Short Formation |
Top 5 recommendations for the next week
LTTS
LTTS is trading in the range since past four trading sessions. Any sustainable move above 4440 level will bring good upside momentum.
Traders can use a stop loss of Rs. 4265 should this trade not go in favour
Ambuja Cement
AMBUJACEM is trading near its previous resistance level. As it is taking support at the previous resistance good upside momentum can be expected above 443 level.
Concor
Concor is trading near its support level of previous important resistance zone. Above 753 level good momentum can be expected.
Hindustan Unilever
Hindustan Unilever is in the strong uptrend and currently it is consolidating between the range of 2825 and 2756 level. Any sustainable move above 2825 level will have good buying opportunity.
Bandhan Bank
Bandhan Bank is trading in the tight range of 289 and 277 level since last week. Also it is resisting at 30 day moving average. Any sustainable move below 277 level will bring good shorting opportunity.
(Gaurav Udani is Founder & CEO of Thincredblu Securities. He tweets @Udanii)
