'See Nifty at 13,500 if 12,000 level taken out decisively'

Dyaneshwar Padwal, AVP Technical Analyst, KIFS Trade Capital, sees the Nifty heading to 13,500 levels if the 12,000 mark is taken out decisively. He told Moneycontrol’s Kshitij Anand that the index may trade rangebound between 11,300 and 12,000 levels during the April series.

Edited excerpts

A: On the monthly chart, the Nifty is oscillating in a rising channel, with resistance placed near the 12,000 mark. If the bulls manage to surpass the specified mark, only then we may see a further rise towards 13,500 levels.

A: In the April series, we may see the first line of resistance for the bulls near 12,000 levels with support near the 11,300 mark. We may see tight consolidation in this range, but stock-specific action may continue on Dalal Street.

Rather than eyeing a directional view on the indices, investors should look for stock-specific action. In this scenario, midcaps may outperform the Nifty.

A: After a breakout near 28,400 levels, the Bank Nifty marched into uncharted territory and continues its northern trajectory. It will tend to remain in motion more or less in the northward direction.

The Bank Nifty has shown strong performance by outperforming the Nifty. In the Relative Rotation Graphs, it is oscillating in a leading quadrant where the relative momentum and strength are very high.

In this scenario, every dip should be used as a buying opportunity. Among banks, State Bank of India is looking quite impressive as it has given a Pennant breakout on the price chart as well as an intermediate trend line breakout on the supporting oscillator RSI.

A: On the monthly chart, SML Isuzu emerged from the corrective pattern, which is in the proximity of 78.6 percent Fibonacci retracement of the previous bull move. RSI has also given an intermediate trend line breakout.

Another stock which is showing strength is Pidilite Industries as it has given an Inverse Head and Shoulder breakout on the weekly chart. We may see the stock to continue to march towards its northern trajectory.

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