Edited excerpts from a chat:
Notwithstanding Wednesday’s loss, the market appears to be on a steady uptrend in October. Is it too early to start dreaming of 26,000?
The Nifty has posted gains in six of the last seven sessions, indicating bullish dominance in the recent period. Rising bottoms on the daily chart, coupled with a recent consolidation breakout, have set the stage for a potential short-term rally. The recent upward move has helped Nifty recover more than 75% of its prior losses, suggesting a possible trend reversal. From here, the 26,000 mark is just a number — a rally toward 25,850 and beyond appears well within reach. On the downside, 25,000 is likely to act as a crucial short-term support level.
Both Nifty Bank and Nifty IT outperformed Nifty in the week. Where do you see the opportunity going ahead?
During the week, both Bank Nifty and Nifty IT outperformed the benchmark Nifty index. However, the key question is whether they can continue to outperform in the short term. Let’s look at them one by one.
Bank Nifty has shown a significant trend reversal, supported by a consolidation breakout on the weekly chart. The momentum and trend continue to favor the bulls in the near term, and on the higher side, the index may move towards making a new all-time high.
Nifty IT, on the other hand, staged a decent comeback, rising about 5% during the week. However, gains in the index might be limited in the short run. On the downside, a move below 35,150 could reignite corrective sentiment in the space.
Given the sharp rally seen in Tata Communications shares on Friday amid hopes of being a beneficiary of TCS’ planned $6-7 billion investment in AI data centers, would you be a buyer in the stock in the week ahead or is it time to book profits?
Given the sharp rally in Tata Communications shares on Friday amid hopes of benefiting from TCS‘ planned $6–7 billion investment in AI data centers, the breakout appears structural, indicating the potential for a medium-term rally. A move towards Rs 2,300 over the next 9–12 months looks achievable. On the downside, Rs 1,700 acts as a key support; a sustained move below this level could weaken the bullish setup. A buy-on-dips strategy looks favorable at current levels.
BSE shares were among the top gainers during the week. Do you think the momentum will sustain?
The stock has shown a significant breakout on the weekly timeframe, triggering a strong rally. Alignment of price action and momentum indicators suggests continued strength in the short to medium term. The momentum is expected to sustain in the coming days, favoring long positions.
Top Picks
Buy NYKAA: Rs 265, TGT Rs 280, SL Rs 255
The stock has been surging with strong momentum, supported by robust demand. Any dips are quickly bought into, with corrections remaining shallow. The recent chart shows a strong breakout, bringing the stock back onto the buy radar. On the higher side, it may move towards Rs 280, while support is around Rs 255.
Buy INDIGO: Rs 5,800, TGT Rs 5,950, SL Rs 5,600
The stock moved higher after a phase of consolidation on the daily chart. The recent upmove pushed the price above the 21 EMA, indicating a positive short-term trend. Additionally, the RSI has entered a bullish crossover, confirming improving momentum. The trend appears positive, with price likely to move towards Rs 5,950 and support at Rs 5,600.
Buy FEDBANK: Buy on dips around Rs 205, TGT Rs 215, SL Rs 200
The stock has given a significant breakout on the daily timeframe, indicating rising optimism. Price is trading above key moving averages, confirming a positive trend. The RSI is in a bullish crossover, further supporting momentum. The trend appears positive, with price likely to move towards Rs 215, and immediate support at Rs 200.
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