By Ajit Mishra
Markets have ended a 2-week-long consolidation phase in continuation to the prevailing trend and inched closer to their record high. Amid mixed global cues, continuous buying in sectors like banking, financials, auto and FMCG combined with a recovery in the IT pack and heavyweights like Reliance plays a crucial role in the sustainability of the trend. On the benchmark front, Nifty has crossed the hurdle at the 18,400 mark and currently trading at 18,598.65 levels. The broader indices continue to attract buying interest wherein the midcap index has made a new record high and smallcap is also catching up with the trend.
As we’re inching towards the record high, traders should plan their positions accordingly and use dips to the support zone in the Nifty to add quality stocks. The same holds for the banking index, which is among the top performing sector, at present. Along with the key levels for indices, we have highlighted a list of stocks across the sectors, looking strong alongside a few weak structures too.
Nifty (CMP: 18,598.65)
Nifty has formed a higher base around 18,050 so we recommend continuing with the positive bias till it upholds this level. In case of a dip below that mark, the profit taking may extend to 17,850. On the higher side, we are eyeing the index to test the 18,500-18,700 zone.
Bank Nifty (CMP: 44,311.90)
The banking index has made a new record high, after spending nearly 2 weeks in a narrow range. We expect up move to continue with some intermediate consolidation. Meanwhile, the private banking counters would continue to outshine the PSU pack so traders should plan their positions accordingly. In the case of profit taking, the 42600-43500 zone would act as a strong support.
Stocks to Watch
Bullish – Axis Bank, Coal India, Hindustan Unilever, Tata Power, M&M FinBearish – CUB, Jindal Steel, Manappuram
(Ajit Mishra – SVP, Technical Research, Religare Broking Ltd. Views expressed are author’s own.)