The Nifty index has been on a remarkable upward trajectory, with technical indicators suggesting a firm uptrend. Analysts are optimistic about the Nifty's performance, predicting a short-term target of 25,700 and a mid-term target of 26,980. This article delves into the technical aspects of Nifty's bullish trend, key stocks to watch, and investment strategies for traders and investors.
#### Technical Indicators and Market Sentiment
Various technical indicators point to a bullish trend for the Nifty this week. The index has strong support at 25,000, with a short-term target of 25,700. Analysts foresee a broader mid-term target of 26,980. On the weekly chart, Nifty closed at an all-time high level and formed a bullish engulfing candlestick. Additionally, Bank Nifty broke above its most recent swing high and closed with a bullish candlestick. Foreign Institutional Investors (FII) turned buyers in the cash segment, while the India VIX fell by 17.5%. The US markets have also turned bullish ahead of the Federal Reserve meeting, adding to the positive bias.
#### Key Stocks to Watch
Several stocks are expected to perform well in the current bullish market. In the banking sector, Bank of Baroda, IndusInd Bank, Kotak Bank, and ICICI Bank are key stocks to watch. In the real estate sector, DLF and Oberoi Realty are expected to see gradual gains. Other notable stocks include IDFC First Bank, CanFin Homes, Bajaj Finance, Godrej Properties, Hero MotoCorp, and JSW Steel.
#### Investment Strategies
**Banking Sector:** Traders can look to go long on Bank of Baroda and IndusInd Bank. The Nifty Metal index is likely to rise sharply towards the 10,000 level in the coming days. Traders can consider long positions in Vedanta, Hindustan Copper, and NMDC for a sharp upside. In the real estate sector, DLF and Oberoi Realty are expected to see gradual gains. ONGC has reached near its support level and may bounce back. In the small-cap segment, investors can accumulate stocks like Praveg, EPL, and Krystal Integrated.
**Technical Analysis by Experts:**
**Arpan Shah, Senior Research Analyst, Monarch Networth Capital:** Shah highlights that Nifty has resumed its uptrend after finding support at the 24,850-24,800 zone. The current rally is likely to continue towards the 25,700–25,750 zone. The daily momentum indicator shows negative divergence, but until prices show decisive weakness below 25,020 — the 20-day moving average — the outlook remains positive. Dips towards intermediate support of 25,250-25,220 should be used as a buying opportunity for the target of 25,500-25,700. The structure becomes weak below 25,020.
**Jatin Gedia, Technical Research Analyst, Sharekhan:** Gedia believes the current up move is likely to be broad-based with participation from underperforming sectors. Stocks like Godrej Properties, DLF, Hero MotoCorp, and JSW Steel from the large-cap space can witness buying interest. In mid-caps, stocks like Exide Industries, NMDC, and Federal Bank have favorable risk-reward entry points.
**Sacchitanand Uttekar, VP Technical & Derivatives, Tradebulls Securities:** Uttekar notes that a strong recovery culminated in an Engulfing Bullish candlestick pattern, signaling robust upward momentum for the rest of the month. Options data for this series indicates a shift in support from 24,800-25,000 to the 25,200 level. The upward momentum may extend towards 25,810, with the next target at 26,000. The broader trend continues to point towards a major target zone of 26,980, reinforcing the potential for further gains.
#### Market Outlook and Investment Recommendations
The Nifty index has shown a strong recovery, forming a bullish engulfing candlestick pattern on the weekly chart. This pattern, along with the positive market sentiment, suggests that the Nifty is poised for further gains. Analysts recommend that traders remain long on both the Nifty and Bank Nifty indices. In the upcoming days, Bank Nifty is expected to surpass its previous all-time high of 53,357, while Nifty is projected to reach 25,700.
**Investment Recommendations:**
1. **Banking Sector:** Traders can look to go long on Bank of Baroda and IndusInd Bank. The Nifty Metal index is likely to rise sharply towards the 10,000 level in the coming days. Traders can consider long positions in Vedanta, Hindustan Copper, and NMDC for a sharp upside.
2. **Real Estate Sector:** DLF and Oberoi Realty are expected to see gradual gains. ONGC has reached near its support level and may bounce back. In the small-cap segment, investors can accumulate stocks like Praveg, EPL, and Krystal Integrated.
3. **Large-Cap Stocks:** Stocks like Godrej Properties, DLF, Hero MotoCorp, and JSW Steel from the large-cap space can witness buying interest. In mid-caps, stocks like Exide Industries, NMDC, and Federal Bank have favorable risk-reward entry points.
4. **Options Trading:** Options data for this series indicates a shift in support from 24,800-25,000 to the 25,200 level. The upward momentum may extend towards 25,810, with the next target at 26,000. The broader trend continues to point towards a major target zone of 26,980, reinforcing the potential for further gains.
The Nifty index is on a firm uptrend, with technical indicators suggesting further gains. Analysts are optimistic about the Nifty's performance, predicting a short-term target of 25,700 and a mid-term target of 26,980. Key stocks to watch include Bank of Baroda, IndusInd Bank, Kotak Bank, ICICI Bank, DLF, and Oberoi Realty. Traders are advised to remain long on both the Nifty and Bank Nifty indices, with a focus on banking, real estate, and metal stocks. By incorporating these investment strategies and keeping an eye on key technical indicators, investors can capitalize on the bullish trend in the Nifty index.
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