We have managed to cross the 24,500 levels. If you look at Nifty, we are up almost 10% in the last one month. From here on, do you see this positive momentum continuing? Also, I want to talk to you about Nifty Bank because Nifty Bank has been an outperformer. It is taking a bit of a breather. In fact, it is very range-bound between 54,000 and 56,000. That is where it is trading at. So, from here on, how do you see Nifty Bank also moving? What are the levels that you are watching out for both on Nifty and Nifty Bank?
Sneha Seth: If you see both indices, they have given a strong move. After that, such consolidation was very much on the cards. For the time being, I believe that support has shifted up, and that is a positive thing. In case of Nifty, there is a strong support zone placed around 24,200-24,300 zone and on the higher side, there is a resistance placed around 24,500 followed by 24,700 is the resistance zone but overall, the base has shifted up. We have been seeing writers shifting higher, and that is a positive thing.
In the case of the banking index, we are seeing some profit taking from the higher levels in a couple of sessions. I believe there is a strong support zone placed around the 54,400-54,500 zone. In case of any declines towards this zone, it would be an opportunity to go long. On the higher side, there is a resistance placed around the 56,000 mark and in case of any follow-up buying above that zone, we may see some momentum coming in. But after such a strong move, such consolidation is a healthy sign.
What are your top stock picks at this point in time? How are the charts looking for those picks?
Sneha Seth: The first of my top picks would be MGL. This counter has been trading in a range but in the last two-three sessions, we are seeing decent buying interest coming in. This counter is already up by 3% today and there is a strong resistance which was around 1400, 1405 levels but looking at the options activity wherein we are seeing decent buildup in the out of the money strikes, 1440, 1420, I believe we may soon surpass this resistance zone and head towards 1440 and above levels. I would suggest going long at the current levels with a stop around today’s low that is 1362 and the target would be around 1447.
Apart from this, SBI Card looks good. This counter again has given a very strong move recently and the overall chart structure has been taking support near the 20 DMA on the daily chart which is set to be positive for any chart structure. Looking at the overall data, we may continue to see up move in this counter as well. So, for the target of Rs 924, it is a buy and stop loss can be maintained around Rs 877.