Look at 23,500 on Bank Nifty, 9750 on Nifty and if both these zones hold then rally will resume, says Ashwani Gujral.
It was a roller-coaster ride for Dalal Street as market tested new highs once again. Nifty after a strong start - it went above 9800 market intraday but wiped off the gains in late trade but ended at new record closing high.
The Sensex too got closer tro 32000 market intraday but could not sustain those levels.
The 30-share BSE Sensex was up 31.45 points at 31,747.09 and the 50-share NSE Nifty rose 15 points to 9,786.05.
Ashwani Gujral of ashwanigural.com says 9700-9750 is a good buying zone because yesterday’s rally was manufactured but 9700 held as a resistance for some time, so that should be the first buying zone. However, today the strong stocks did not help the market and so sometimes these sort of new highs can lead to larger corrections as well. So, in case 9700 starts to get taken out then things could change.
With regards to Bank Nifty, Gujral says the 20 day moving average is at 23,500 and that is extremely important for uptrend to continue because that index hasn’t made a fresh high.
So look at 23,500 on Bank Nifty, 9750 on Nifty and if both these zones hold then rally will resume, says Gujral. However, global markets are also important and one must keep an eye on how they are trading. Generally, July –August is a flattish to down month for the market, so don’t expect big rally- market could be sideways to up.
With respect to the rally seen in IT stocks and more so in Infosys, Gujral says that rally could be more because of short covering and it is unlikely that the stocks will keep rallying.
Meanwhile, market expert Ambareesh Baliga says one should use the bump ups in IT stocks to book because things are not going to change much for them at least for 4-quarters. So, IT has been in a SIP mode, there is no need to rush and buy.
However, Mitessh Thakkar of mitesshthakkar.com likes most IT stocks and think they are headed for an uptrend. He would be long on IT – particularly TCS, Infosys and as long as Nifty is above 9700-9780 levels, he would be long on other IT stocks and most of the indices too, says Thakkar. However, if the Nifty goes below these levels, then would look for shorting opportunities, he adds.
When asked about PUS bank short covering bounce yesterday and a reversal today reversal, market expert Sudip Bandopadhyay says he expects the performance for them this quarter to be better because a lot of provisioning is behind them and so the burden of provisions this quarter could be lower. Large PSU could see better treasury gains.