Nifty, on a daily timeframe, is trading within a flag formation which is bounded in the range between 11,650 to 12,025 levels.
The pace of recovery may be slow but most analysts and rating agencies believe that the Indian economy will see a strong rebound in the year 2021.
Today the bank is valued at Rs 6.7 lakh crore in terms market capitalisation, which increased from just Rs 440 crore in 1995.
The immediate requisite for unlocking the directional momentum play would be a definitive close above 11,950-12,065 zone.
Mitessh Thakkar of mitesshthakkar.com suggests buying Divi's Labs with a stop loss of Rs 3,095, target at Rs 3,250 and Dr Reddy's Labs with a stop loss of Rs 5,040, target at Rs 5,250.
Bank Nifty is looking much stronger than Nifty and we can expect it to test 25,000-25,250 levels in the coming sessions.
The bank will continue on the growth path, as Jagdishan has been with HDFC since 1996 and has played an integral role in shaping the private lender, say experts.
Mitessh Thakkar of mitesshthakkar.com recommends buying HDFC Life Insurance with a stop loss of Rs 572, target at Rs 595 and Larsen & Toubro with a stop loss of Rs 939, target at Rs 980.
On the downside, immediate support is seen at 11,717 where a 20-day SMA is placed. Nifty has never closed below its 20-day SMA in the month of October.
ITC traded higher in the previous week and the uptrend is likely to continue; Rs 160 should be considered the stoploss level on a closing basis, says Shabbir Kayyumi of Narnolia Financial Advisors. .
The ‘RSI-Smoothened’ for Nifty on the weekly timeframe chart has started moving northwards after entering a bullish territory above the 70 mark, which is likely to provide the impetus.
Nifty is trading above all important moving averages 20/50/200 DMA indicating price action is in favour of bulls.
The Nifty can continue trading in the 11,790-12,018 range with a positive bias and a level of 12,180 can be expected if the range breaks on the upside.
Neeraj Chadawar of Axis Securities believes that market volatility is likely to provide good opportunities for Midcaps and Small caps.
Here are the expert views on what investors should do when the market resumes trading on Friday, 23 October.
The second-quarter result season and rollover movement will increase volatility in individual sectors and stocks.
Kajaria Ceramics, HDFC Bank, Federal Bank, ACC and HUL are among 10 stocks in which foreign brokerages raised the target price.
Sudarshan Sukhani of s2analytics.com suggests buying Interglobe Aviation with a stop loss of Rs 1,350, target at Rs 1,385 and DLF with a stop loss of Rs 169, target at Rs 176.
Current chart formation suggests Nifty may find major support around 11,650 which is well-supported by a 21-day exponential moving average.
As the September quarter earnings bouyed market sentiment and increased hope for strong earnings growth in coming years, brokerages upgraded majority of quality stocks in current month.
Momentum indicators are yet to witness an overbought state while there are no signs of divergence displayed on the daily scale.
Sudarshan Sukhani of s2analytics.com suggests buying Apollo Hospitals with a stop loss of Rs 2,190, target at Rs 2,245 and Godrej Properties with a stop loss of Rs 920, target at Rs 950.
On the technical front, the 11,700-11,600 zone is a strong support area for Nifty and any dip in prices should be used to create fresh longs.
Ashwani Gujral of ashwanigujral.com recommends buying ICICI Bank with a stop loss of Rs 410, target at Rs 435 and State Bank of India with a stop loss of Rs 199, target at Rs 214.
Nifty has got strong support at 11,660 and it can be kept as a stop loss in long positions. Upside targets for Nifty are seen at 12,250 and 12,430.