The Nifty50 continued its northward journey for the sixth consecutive week as it crossed another milestone of 11,700 on first day of August expiry week and ended at record closing high, driven by positive global cues. The rally in bank stocks on hope of early resolution to non-performing assets also boosted investors’ sentiment.
The index formed robust bullish candle on the daily candlestick charts on Monday. The broader market also participated in the rally with the Nifty Midcap rising over a percent while all sectoral indices ended in the red with Nifty Bank, IT and Metal rising around 1.5 percent each.
The consistent upward movement has been taking indices to newer highs every week which seems to be indicating that the Nifty may be heading towards 11,800-12,000 but one should keep cautious stance as the Nifty rallied more than 6 percent for five consecutive weeks, experts said, adding the volatility may increase ahead of expiry of August derivative contracts on Thursday.
The Nifty50 after opening directly above 11,600 levels gradually moved up as the day progressed and hit an intraday record high of 11,700.95 in late trade. The index closed 134.90 points higher at 11,692.
India VIX fell 0.76 percent to 12.31 levels and overall lower volatility suggests that bulls are likely to hold the tight grip on the market, experts feel.
According to Pivot charts, the key support level is placed at 11,624.73, followed by 11,557.47. If the index starts moving upwards, key resistance levels to watch out are 11,730.13 and 11,768.27.
The Nifty Bank index closed at 28,264.20, up 429.50 points on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 28,042.34, followed by 27,820.47. On the upside, key resistance levels are placed at 28,401.94, followed by 28,539.67.
Here are the top stock trading ideas which can give good returns in the near term:
Vinay Rajani of HDFC Securities
Buy Axis Bank with target at Rs 700 and stop loss at Rs 620
Buy PNB Housing Finance with target at Rs 1550 and stop loss at Rs 1330
Buy Piramal Enterprises with target at Rs 3200 and stop loss at Rs 3025
Rajesh Agarwal of AUM Capital
Buy Torrent Pharmaceuticals with stop loss at Rs 1768 and target of Rs 1800
Buy Lupin with stop loss at Rs 898 and target of Rs 923
Buy Adani Transmission with stop loss at Rs 195 and target of Rs 215
Buy Bharti Airtel with stop loss at Rs 367 and target of Rs 395
Buy VIP Industries with stop loss at Rs 618 and target of Rs 650
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com/CNBC-TV18 are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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