According to Ashish Kyal of Waves Strategy Advisors, overall Nifty outlook remains positive for a move eventually to 25,000 or higher unless any major change in global events results into change of trend.
As long as major supports are intact near 23,200 which is the Gap area, any correction will be a healthy sign that will form the base for the next leg on upside, he said in an interview to Moneycontrol.
The Founder and CEO of Waves Strategy Advisors is bullish on Mazagon Dock Shipbuilders, and ICICI Bank. "Mazagon Dock is making fresh highs with each passing day, while ICICI Bank has continued to move up in form of higher high and higher low formation," he said.
Do you think the Nifty may find it tough to surpass the December swing high?
Nifty has shown strong rise from the lows of 21,743 made post Trump tariff announcement and has managed to surpass even 24,000 levels in just 7 trading sessions on April 21. Prices have been climbing the wall of worry, despite of all the odds. Post that prices are consolidating in a broad range of 24,460 and 23,840. This is a good sign as market is taking a breather before getting ready again.
As of now we can say prices are consolidating in form of wave 2 which can be in terms of price and/or time correction. Post this we can see resumption of up move. Break above 24,460 will confirm that next wave up is resuming for move to Gann level of 24,728 followed by psychological level of 25,000. Any breach below 23,840 can result into short term pressure but eventually prices should manage to surpass December swing high moving towards 25,000 levels.
How did the market behave in the month of May in previous years, and do you see a similar trend playing out in May 2025?
There is a famous Wall Street adage which states “Sell in May and Go Away”. However, this is applicable when we have seen multi-month rally and the markets are tired showing sluggish momentum. This time we are climbing the wall of worry, where majority are still skeptical of the rise and are staying on sidelines. As long as major supports are intact near 23,200 which is the Gap area, any correction will be a healthy sign that will form the base for the next leg on upside. In summary, overall outlook remains positive for a move eventually to 25,000 or higher unless any major change in global events results into change of trend.
Do you believe the Bank Nifty is looking overbought now and may consolidate around current levels in May?
In the month of April, Bank Nifty stretched on the upside and surged by nearly 7,000 points and made a lifetime high of 56,098 levels. As the index has witnessed a strong one side rally, this is often followed by a consolidation or a minor profit booking. Prices for the past few sessions have been trading in between 54,170 to 56,100 levels. For now, acceptance above 56,100 levels is must for prices to resume the up run. Until then, we can except prices to trade within the above-mentioned range.
What are your two strong bets for the month of May?
Mazagon Dock has gained by more than 18 percent in past 3 days. Stock is making fresh highs with each passing day. Along with this, prices have formed a rounding bottom pattern on the weekly chart. For now, we can expect bullish momentum to continue in this stock with the targets of Rs 3,500 levels. Short term indicators are overbought so buy on dips is better strategy as long as Rs 2,800 is intact.
ICICI Bank has continued to move up in form of higher high and higher low formation and was also the top performing stock in the banking sector. After 2-3 sessions of profit booking prices have again started to move up and made a lifetime high of Rs 1,438.30 levels in the Tuesday’s session. For now, a break above Rs 1,440 levels for up move to continue with the targets of Rs 1,550 levels as long as Rs 1,370 holds on the downside.
Are you bullish on PSU stocks?
Yes, stocks like Engineers India, Mazagon Dock, Bharat Electronics, Hindustan Aeronautics, and BEML have shown a good rise in this month and now on the verge to give breakout of its respective resistance levels. Once we get a breakout of it, we can expect next wave on upside in above PSU stocks.
Do you expect a strong breakout in the Nifty Auto index?
We are seeing rotational buying in market with different sectors are contributing to the up move. We can see strong contribution from financials and banking stocks so far and there is possibility that automobile and other interest sensitive stocks might start contributing. Currently auto sector is consolidating at higher end in between 21,900-22,600 levels. A decisive break above 22,600 can result into fresh breakout in the sector.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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