Bank Nifty is almost near to lifetime high levels. "It is best to use dips to buy as long as we do not see close below prior day’s low, which is now at 53,085," said Ashish Kyal, Founder and CEO of Waves Strategy Advisors, in an interview with Moneycontrol.
According to him, the banking index can move to 55,000 levels, only 750 points away from here.
After the tariff lows, the Nifty rallied 2,100 points. Short-term consolidation is possible, but it is best to use dips as a buying opportunity to move to 24,200 over the near term, Kyal said.
Do you see the Bank Nifty climbing toward 55,000 next week, or will it consolidate considering the recent decisive run-up?
Bank Nifty post post-reversing from the lows of April 7, 2025 has gained more than 5,200 points in such a short span of time, highlighting the strength in the ongoing trend. Prices are almost near lifetime high levels, and it is best to use dips to buy as long as we do not see close below the prior day’s low, which is now at 53,085. Short-term indicators are overbought so consolidation cannot be ruled out. The index can move to 55,000 levels, only 750 points away from here.
Do you expect the Nifty 50 to march toward 25,000 in the coming weeks, considering the decisive trendline breakout on Thursday?
Nifty showed a sharp rise from the lows of 21,743 created post the Trump tariff event. Prices protected the prior low on a closing basis and reversed sharply higher. In the last 6 trading days, we can see the prior day's low is protected. This is a rise of nearly 10 percent or 2,100 points. Short-term consolidation is possible, but it is best to use dips as a buying opportunity for a move to 24,200 over the near term.
From the Elliott wave perspective, prices might be in the 3rd wave, and Gaps are usually seen in this wave pattern. On the upside, Nifty can eventually move to 25,000 from a medium-term perspective. In summary, as long as 23,200 is intact, use dips to buy for better risk reward for the move to 24,200 and eventually to 25,000 over the coming months.
Are you betting on PSU banks, considering the bullish bias in several of these stocks?
Nifty PSU Bank sector looks to have formed an inverse Head & Shoulders pattern on the daily chart, and prices gave a breakout of it in Thursday’s session. Many of the stocks from this space are showing similar bottoming patterns and are givinga breakout. Stocks like PNB, Canara Bank, Bank of Baroda are showing accumulation patterns and breaking out. However, it is better to buy on dips for a good risk-reward setup.
Do you view the recent low in Nifty IT as a potential double-bottom formation?
Nifty IT sector recently bounced on the upside from its important support of 31,300 levels. It will be too soon to say about double bottom formation. For any positive reversal, weekly close above prior week’s high is required. Fall in IT stocks has been sharp and we are yet to see base formation. It is too soon to conclude if Nifty IT is going to move up immediately from here but eventually this index should also contribute towards the ongoing up move seen in other indices. Nifty IT index is currently trading near 33,370 levels. Break above 33,800 will create higher high and higher lows with positive reversal over short term.
What are your top two stock picks for the upcoming week?
FMCG sector has witnessed smart recovery from the lows. Wherein, Nestle is outperforming its sector and was consolidating in a broader range since October 2024. In Thursday’s session, prices finally gave a breakout of it with surge in volumes which is a positive sign. For now, it has opened doors for the upside target of Rs 2,520 followed by Rs 2,610. On the downside, Rs 2,320 should remain protected.
The stock has recently given a breakout of the double bottom pattern on the daily chart. The target as per the pattern comes near Rs 1,765 levels. Also, since April 8 not a single candle has closed below prior day’s low which keeps the trend on the positive side unless we see a close below prior day’s low. Post sharp rise buy on dips looks prudent strategy to ride the trend for the targets of Rs 1,765 as long as Rs 1,575 remains protected on the downside.
Are the charts indicating an overbought situation in Bharti Airtel and Eicher Motors?
At the start of April month, Bharti Airtel faced support of the mid Bollinger Bands on the daily chart and reversed on the upside and showed a rally of more than 11 percent. Currently, the stock is trading at the lifetime highs, and it has managed to outperform Nifty. However, currently daily RSI (Relative Strength Index) is entering into a overbought territory so possibility of minor dips cannot be ruled out. One can use it as an opportunity to create fresh longs with the targets of Rs 1,950 followed by Rs 2,100. On the other hand, a breach below Rs 1,790 will be a first sign of trend change.
Eicher Motors since past two weeks, has been moving in gaps. Stock has managed to protect its prior day's low since April 8 and have rallied by more than 10 percent since which reflects strength in the ongoing trend. On upside, we can expect move to Rs 5,900 followed by Rs 6,200 levels. On the downside, Rs 5,410 is the crucial support to watch out for!
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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