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Slideshow | Stay cautious, investors can accumulate quality stocks on dips: Experts

Here are the experts view on how to trade in market in the coming week:
Oct 26, 2020 / 08:31 AM IST
The market ended the week gone by with an over one percent gain supported by the FIIs. BSE Sensex rose 702.52 points or 1.75 percent to close at 40685.50, while the Nifty50 added 167.95 points or 1.42 percent to end at 11930.4 levels.
The market ended the week gone by with an over one percent gain supported by the FIIs. BSE Sensex rose 702.52 points or 1.75 percent to close at 40685.50, while the Nifty50 added 167.95 points or 1.42 percent to end at 11930.4 levels.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | Traders need to be disciplined and careful while trading in the coming week. On a weekly basis, the market has formed a "Narrow ranged inside body" formation. It is certainly going to invite major volatility in the coming week, which is coincidently last week of the current month's F&O contracts. The market has spent time between the levels of 12030 and 11770. In between the market witnessed stock-specific sizeable correction in Index giants namely Reliance, TCS and HUL. In the coming week, if these stocks start reversing from their current lows then it would not be difficult for the Nifty to cross the level of 12050. The ideal strategy should be to trade long above the level of 12050 as it could push the market towards 12300/12400 levels (near to its all-time high level). Below the level of 11770, Nifty could fall back to 11428 where it has left a bearish gap on a weekly chart.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | Traders need to be disciplined and careful while trading in the coming week. On a weekly basis, the market has formed a "Narrow ranged inside body" formation. It is certainly going to invite major volatility in the coming week, which is coincidently last week of the current month's F&O contracts. The market has spent time between the levels of 12030 and 11770. In between the market witnessed stock-specific sizeable correction in Index giants namely Reliance, TCS and HUL. In the coming week, if these stocks start reversing from their current lows then it would not be difficult for the Nifty to cross the level of 12050. The ideal strategy should be to trade long above the level of 12050 as it could push the market towards 12300/12400 levels (near to its all-time high level). Below the level of 11770, Nifty could fall back to 11428 where it has left a bearish gap on a weekly chart.
Ajit Mishra, VP - Research, Religare Broking | All eyes are on US markets for updates on the stimulus package and upcoming presidential elections. The news on COVID-19 cases in Europe will also remain on the participants' radar. Volatility usually remains high in stocks during the earnings and we’re seeing a similar trend. Amid all, the market is offering ample trading opportunities but the key is to identify the right stock. Since the bias is still positive, we suggest continuing with the “buy on dips” approach.
Ajit Mishra, VP - Research, Religare Broking | All eyes are on US markets for updates on the stimulus package and upcoming presidential elections. The news on COVID-19 cases in Europe will also remain on the participants' radar. Volatility usually remains high in stocks during the earnings and we’re seeing a similar trend. Amid all, the market is offering ample trading opportunities but the key is to identify the right stock. Since the bias is still positive, we suggest continuing with the “buy on dips” approach.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead, market is likely to remain in a tight range as US election draws near. The technical setup suggests Nifty range of 11750-12100 in the near term. We expect more stock specific action given the prevailing earnings season and mixed global cues. We would advise traders to be adopt a cautious approach while investors can accumulate quality stocks on dips.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead, market is likely to remain in a tight range as US election draws near. The technical setup suggests Nifty range of 11750-12100 in the near term. We expect more stock-specific action given the prevailing earnings season and mixed global cues. We would advise traders to adopt a cautious approach while investors can accumulate quality stocks on dips.
Markets - Image: Reuters
Nagaraj Shetti, Technical Research Analyst, HDFC Securities | The short term trend of Nifty continues to be range bound and the near term uptrend status remains intact. There is possibility of retest of 12000-12050 levels by next week, before showing minor profit booking again from the highs. A decisive move above this hurdle could open next upside levels of 12250 levels and higher in the near term. Immediate support is placed at 11825.
BSE_Sensex_markets
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors | Recently Index is continuously taking resistance from 12025 marks, and any decisive move above these levels will lead to a fresh breakout. Moreover, the current correction is in the form of an inverse head and shoulders pattern, and targets as per formation come to 12300. Though small resistance will come around 12150 as that being a Fibonacci extension of 1.618 taken from 11618 pivot point and 10790 low. Looking at current scenario, Nifty is set to trade above previous life high. On the downside, crucial support is provided by 20 DMA is placed around 11680.
Rakesh Patil
first published: Oct 26, 2020 08:31 am

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