Ashish Kyal of Waves Strategy Advisors suggests buying Kiri Industries, and Carborundum Universal for next week. "In case of Kiri Industries, a breakout of the rounding bottom pattern on the weekly chart is expected," he said in an interview to Moneycontrol.
According to Kyal, Carborundum Universal is trading at resistance to consolidation. Volumes have started picking up, which is a good sign.
The 200-day EMA acts as a critical support level for the Bank Nifty and the low (49,900) of the last trading session was exactly on the 200-day EMA. "Breach below 49,900 will confirm breakdown in this index and we can expect lower levels towards 48,500 on downside," said the Founder and CEO of Waves Strategy Advisors, with more than two decades of experience in capital markets.
Also, he believes, the Bank Nifty will start wave C or wave 3 on the downside which can create panic in markets. So, Bank Nifty is at a crucial juncture, he said.
Will Nifty break 23,300, the second target of H&S pattern, and sharply rebound from there on? Is the index looking oversold now?
Nifty has been moving in the exact way that we predicted in our earlier interview. It was trading around 23,980 at that point of time when we mentioned for a possible target of 23,300 on the downside as per the topping Head & Shoulders pattern. We can clearly see a sharp decline from there and prices have already made a low of 23,484 near Gann levels on the last trading day.
The overall trend is to sell on the rise for better risk-reward as currently, short-term indicators are oversold. This pullback can provide a good opportunity to create fresh short positions with the aim of 23,300 levels which is the second target of the H&S pattern. Price action around this area will be important. Only if we manage to see a close above the prior day’s high we can say a possible bounce but unless then use the pullback to sell.
Do you think the Bank Nifty will decisively break 200-day EMA (Exponential Moving Average) or it will rebound from current levels where it formed Inverted Hammer pattern?
As 200-day EMA acts as a very important support level, Bank Nifty has recently witnessed a steep fall of more than 2,000 points in just two trading sessions. The low of the last trading session was exactly on 200-day EMA. A breach below 49,900 will confirm a breakdown in this index and we can expect lower levels towards 48,500 on the downside. Also, it will start wave C or wave 3 on the downside which can create panic in markets. So, Bank Nifty is at a crucial juncture. A break below 49,900 will be bearish with 50,700 as immediate upside hurdle.
Do you see the new leg of up move in Zomato which smartly defended September low and rebounded?
Yes, Zomato bounced on the upside from its September low. Prices have not given a close below its previous day’s low since November 11 which keeps the daily bias on the positive side. Currently, the Zomato is trading near its important resistance, a break above Rs 272 level can lift the prices towards Rs 285 followed by Rs 300 as long as Rs 255 level holds on the downside
Are you bullish on Indian Hotels?
Indian Hotels have recently broken its important resistance level of Rs 720 level. In Thursday’s session, the stock gained 3.8 percent in just one trading session despite all major indices falling. For now, a break above Rs 750 level can result in a fresh course of buying with the targets of higher towards Rs 790 followed by Rs 810 as long as the Rs 720 level is protected on the downside. As a disclaimer we do hold long positions in this stock.
Can Nifty FMCG break June low?
Nifty FMCG showed a sharp selloff and currently trading at the 55,780 level. We can see relentless selling in this index without any pullbacks. There are no signs of reversal yet but indicators are oversold over the short term. Important price action support is at the 54,750 level on the downside and we can see a minor pullback from this level. It is best to avoid catching a low unless we see a bottoming reversal pattern formation.
You top 2 picks for next week?
Kiri Industries | CMP: Rs 452
The stock has formed a rounding bottom pattern on the weekly chart. A breakout of the pattern is expected. The upside pattern target for the stock is near Rs 500 followed by Rs 540 levels. On the downside support for the stock is near Rs 420 level.
Carborundum Universal | CMP: Rs 1,462
The stock is trading at the resistance of the consolidation. Volumes have started picking up which is a good sign. A break above Rs 1,470 can result in a breakout of the consolidation which can result in a fresh rise with the targets of Rs 1,540 followed by Rs 1,600. On the downside, Rs 1,420 is the nearest support level.
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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