Based on the technical chart analysis, "there is a greater likelihood that the Nifty index will reach a five-week high, specifically the 18,887.60 mark," said Rajesh Satpute, a technical and derivatives analyst, and founder of rajeshsatpute.com, in an interview to Moneycontrol.
Moreover, he feels there is a possibility of surpassing the previous high and achieving a new record high, with the index potentially reaching the 19,000+ level in June 2023.
In case of Bank Nifty, Rajesh, with more than two decades of experience in equity research, says the current market momentum may encounter strong resistance near the 52-week high of 44,151.80. If a breakout above this level occurs, it could trigger a significant short-covering rally towards 47,000+ level in the near term, he feels.
Q: Are the charts telling you that the Nifty can hit its record high in June?
The market is experiencing a strong upward trend due to recent buying activity from foreign institutional investors (FIIs). However, the mixed quarter-on-quarter (QoQ) numbers are introducing volatility in various stocks and sectors.
Based on the technical chart analysis, there is a greater likelihood that the Nifty index will reach a five-week high, specifically the 18,887.60 mark. Moreover, there is a possibility of surpassing the previous high and achieving a new record high, with the index potentially reaching the 19,000+ level in June 2023.
Q: If you feel the rally is likely in coming weeks, then which are the sectors that can contribute the most?
Considering the prevailing market momentum and the movement of different sectors, there is a greater likelihood of sectors such as banking, financial services, automobile, fast-moving consumer goods (FMCG), and capital goods performing well in the near future.
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Sectors like pharmaceuticals are expected to continue drawing selective buying interest. Additionally, the technology sector may witness unexpected buying activity or short-covering during the June series expiry.
Q: What is your take on the Bank Nifty?
There is a possibility of renewed buying in Bank Nifty, although a temporary dip towards 42,000 level may occur in the near future. This dip could present a favourable buying opportunity for long-term investors.
However, it's important to note that the current market momentum may encounter strong resistance near the 52-week high of 44,151.80. If a breakout above this level occurs, it could trigger a significant short-covering rally towards the 47,000+ level in the near term.
Q: Which stocks are on your radar for next week?
Based on the current momentum, we anticipate increased buying activity in Larsen & Toubro, Persistent Systems, Reliance Industries, and Axis Bank in the upcoming days.
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Q: Do you see further rally in Cholamandalam Financial Holdings after a 36-percent run in current month so far?
Cholamandalam Financial Holdings experienced significant buying activity after a breakout. In recent days, it surged from Rs 800 to Rs 1,043, driven by buying and subsequent short-covering.
Based on the technical analysis, we anticipate the counter to consolidate in the near term, potentially reaching around Rs 900 level. Therefore, we recommend short-term investors to book partial profits at this point.
Q: Do you think the Nifty Auto is marching towards 15,000 mark and will that be possible in June?
The auto sector has performed admirably recently, demonstrating a consistent upward movement from 12,500 to 14,000 levels. However, it is worth noting that 14,000 is a significant resistance level from a technical standpoint.
To continue its upward trajectory towards 15,500 level, a breakout above 14,000 is required. Considering the current market structure, a temporary dip towards 13,200 level is possible before advancing toward our projected target.
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