Last Updated : Nov 17, 2020 07:27 AM IST | Source: Moneycontrol.com

Nifty likely to test 12,900-13,000, adopt buy on dips strategy: Experts

Given fair valuations for Nifty, we would suggest investors to adopt buy on dips strategy and traders to keep booking profit intermittently, says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Market extended gains for the second consecutive week ended November 13 ignoring weak domestic data and rising cases of COVID-19 worldwide. Meanwhile, FII support helped the indices gain more than 3 percent. Here are expert views on what to expect this week:

Market extended gains for the second consecutive week ended November 13 ignoring weak domestic data and rising cases of COVID-19 worldwide. Meanwhile, FII support helped the indices gain more than 3 percent. Here are expert views on what to expect this week:

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas | The fact that the market is at all time high adds to the festive cheer. Clearly there is excitement on the street and that is getting reflected in the volumes. We have been witnessing increased market participation since the last few months and that continues in the Muhurat trading as well. Even on the Muhurat trading day the volumes were higher than the last year. A rally which is supported by high volumes is considered as a bullish sign; so we are expecting the rally to sustain at higher levels. The banking and financial services space has a lot of ground to cover on the upside and can continue to witness buying interest going ahead.

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas | The fact that the market is at all time high adds to the festive cheer. Clearly there is excitement on the street and that is getting reflected in the volumes. We have been witnessing increased market participation since the last few months and that continues in the Muhurat trading as well. Even on the Muhurat trading day the volumes were higher than the last year. A rally which is supported by high volumes is considered as a bullish sign; so we are expecting the rally to sustain at higher levels. The banking and financial services space has a lot of ground to cover on the upside and can continue to witness buying interest going ahead.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | The market is consolidating and slowly inching higher towards 12900/13000 levels. The Nifty 50 index is forming a symmetrical triangle on the intra-day chart. It's a bullish continuation formation that would lift the market towards the psychological mark of 13000. The breadth of the broader market is quite satisfactory, which is indicating a firm grip of bulls and would not allow the Nifty to fall below 12600 levels in the normal circumstances.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | The market is consolidating and slowly inching higher towards 12900/13000 levels. The Nifty 50 index is forming a symmetrical triangle on the intra-day chart. It's a bullish continuation formation that would lift the market towards the psychological mark of 13000. The breadth of the broader market is quite satisfactory, which is indicating a firm grip of bulls and would not allow the Nifty to fall below 12600 levels in the normal circumstances.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Technically Nifty formed a Bullish Candle on daily and weekly scale which suggests buying is visible at lower zones. Now it has to hold above 12550 to witness an up move towards 12800-12900 zones while the support exists at 12430. Volatility has significantly cooled down and needs to sustain at these levels for the continued positive momentum in the market. Government’s fiscal stimulus package 2.0 is another incremental step toward the betterment of the rural sector which would boost consumption. This along with abundant liquidity should provide support to the market. However, given fair valuations for Nifty, we would suggest investors to adopt buy on dips strategy and traders to keep booking profit intermittently.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Technically Nifty formed a Bullish Candle on daily and weekly scale which suggests buying is visible at lower zones. Now it has to hold above 12550 to witness an up move towards 12800-12900 zones while the support exists at 12430. Volatility has significantly cooled down and needs to sustain at these levels for the continued positive momentum in the market. Government’s fiscal stimulus package 2.0 is another incremental step toward the betterment of the rural sector which would boost consumption. This along with abundant liquidity should provide support to the market. However, given fair valuations for Nifty, we would suggest investors to adopt buy on dips strategy and traders to keep booking profit intermittently.

Sanjeev Zarbade, VP PCG Research, Kotak Securities | Market mood gained further ground on news updates on successful testing of a Covid-19 vaccine, stable count of Covid cases in India, improvement in high frequency indicators and a better-than-expected 2QFY21 results. Advise investors to look for market corrections to buy with a long term view.

Sanjeev Zarbade, VP PCG Research, Kotak Securities | Market mood gained further ground on news updates on successful testing of a Covid-19 vaccine, stable count of Covid cases in India, improvement in high frequency indicators and a better-than-expected 2QFY21 results. Advise investors to look for market corrections to buy with a long term view.

Sensex_Nifty

Ajit Mishra, VP - Research, Religare Broking | We expect further consolidation in the Nifty after the recent surge and also due to the existence of a hurdle at 12,800. In the case of any dip, it would find support around the 12,400-12,500 zone. Meanwhile, we suggest focusing on the broader markets as we’re seeing fresh traction but stick to the quality midcap and smallcap names.

Markets - Image: Reuters

Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors | Considering the recent up move in the form of ABCD harmonic pattern, the index is progressing in CD leg and it has achieved its 1.272 levels of AB in the last week; however possibility of extension of up move towards 1.618 levels (13500) cannot be ruled out. At the same time majority of the momentum oscillators & indicators are in the overbought zone, hence the possibility of correction towards the line of polarity placed around 12400 cannot be ruled out.

First Published on Nov 17, 2020 07:27 am
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