Vishal B Malkan
The market seems to be at an important juncture at present. The level of 11,200 could be make or break one for this week.
More importantly, as we head into an important time cycle this week. March 21, the equinox, signals an important change in market trend. So, the next two weeks could show some movement.
A few Sectors that could provide trading opportunities this week:
Banking sector: Bank Nifty daily and weekly charts show strength, which means this index should outperform Nifty in the coming fortnight. The limelight could be on PSU banks which show good strength, especially Bank of India which is at a good support of 78 levels.
So is Punjab National Bank which has begun forming a series of higher tops and higher bottoms on the weekly chart. Bank of Baroda has multiple supports at the price level of Rs 100, both on the daily as well as weekly charts.
On the private side, ICICI Bank has had a good breakout last week.
IT Sector: Nifty IT Index has undergone a range shift in relative strength index (RSI). The momentum indicator which was moving up has slipped into sideways zone. The weekly chart too indicates resistance in momentum.
Technical studies indicate that IT stocks tend to move in inverse proportion vis-à-vis the market. Hence, the slowdown in the movement of stocks in the IT sector could be an anticipation of the market moving up.
Metal Sector: While Jindal Steel & Power has been a good buy candidate for sometime now, there is a fresh opportunity to buy this week since the stock is at a good momentum support, offering a low risk trade.
SAIL also seems to be forming a gradual but strong bottom on the monthly chart. One can use dips on lower time frame to go long on this stock.
Auto Sector: Maruti Suzuki seems to be forming a small triangle pattern on the daily chart – a breakout above which could give a good momentum trade.
Baja Auto is on the verge of a breakout. Ashok Leyland continues to be a good buy candidate.
Reliance Infrastructure and Reliance Capital, both provide a good shorting opportunity this week below Rs 124 and Rs 182 levels, respectively. Momentum indicators on their monthly and weekly charts continue to remain into bearish zones with price tagging the volatility bands on the downside.
To conclude, the market is more conducive to swing trades at present until the range is broken on either side. If this range breaks on the upside, one could add to their existing long positions or take more positional trades. The coming fortnight could be important from a trading perspective, mostly in favour of the bulls.
The author is founder of MalkansView.
Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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