ABB India and Siemens from the capital goods space have seen unstoppable actions from the last couple of months. "Supports have consistently shifted higher. These stocks have remained resilient despite the weakness in the broader markets and are expected to continue the up move," Shivangi Sarda, analyst - equity derivatives & technicals, broking & distribution at Motilal Oswal Financial Services, said in an interview with Moneycontrol.
She believes both stocks are expected to witness an 8-10 percent move from the current levels.
For the next weekly expiry, Sarda, who has more than six years of experience in technical research, advises that one can apply the Bull Call Spread strategy for the Bank Nifty.
Do you think the selling pressure seems to be over and the market may consolidate at current levels before resuming its upward journey? Are you still confident of Nifty moving towards 23,000 mark by the end of the current month?
The steep profit booking decline of more than 600 points was seen from the lifetime high zones in Nifty with surge in India VIX. Volatility has completely caused a roller coaster ride as it crossed 18 to touch fifteen-month high levels. This is keeping the capped upside for short-term time frame.
However, the index has witnessed a comeback of the bulls near its crucial level of 22,222 and bounced back at its 50 DEMA (days exponential moving average). Swings are likely to continue until volatility cools off and a hold of 22,222 in Nifty can extend the move towards its recent lifetime high of 22,794 then 23,000 zones while major support is placed at 22,000 then 21,700 zones.
Is the Bank Nifty bottomed out? Also, what is your F&O trading strategy for next week's expiry?
Bank Nifty has slipped from its all-time high levels on account of the broader market weakness. Although the selective heavyweight private and PSU banks are still holding strength.
Now major support for Bank Nifty is placed at 47,777 zone and with this support it can attempt towards a bounce of 49,000 levels. One can go for Bull Call Spread to play the next week’s expiry as it is expected to hold above its 50 DEMA.
In the Bull Call Spread, one can buy at-the-money (ATM) Call option and sell out-of-the-money (OTM) Call option, with same expiry date.
Is the Nifty FMCG looking ready for a move towards record high now?
Nifty FMCG Index has given a consolidation breakout of the last thirteen weeks along with strong follow up buying. Surge in volume here will add momentum to continue in heavyweights. It is holding above 56,000 mark and a hold above the same could extend the move towards its lifetime high zones.
Are the charts indicating too much bullish bias in Bharat Forge from here on?
Bharat Forge witnessed a price volume breakout with short covering activities which indicates momentum should continue from current zones.
Do you see unstoppable journey in ABB India and Siemens?
ABB India and Siemens from the capital goods space have seen unstoppable actions from the last couple of months and supports have consistently shifted higher. These stocks have remained resilient despite the weakness in the broader markets and are expected to continue the upmove.
Both stocks are expected to witness an 8-10 percent move from the current levels.
Your top 2 bets for next week?
With consumption stocks in action and momentum, focus is on ITC which is steadily making a base for a fresh leg of rally. It has been making higher lows from the last three months and now surpassed its cluster zone of the Rs 440 mark on the daily frame.
The stock has been consistently moving in an upward-sloping channel and gradual volumes are adding to the stock. One of the strongest stocks in the hotel and tourism pack and RSI (relative strength index) is turning positive.
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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