Nifty Outlook: Like the last two sessions, there were ups and downs in the market on Thursday too. But, the difference was that this time Nifty did not close at the lower level of the day, but near the upper level.
Even though the gains may not have been huge, Nifty made ‘higher highs’ and ‘higher lows’ in today’s chart. Buying was seen in all sectors – especially metal, IT and pharma stocks. The IT index has risen about 5% in four trading days this week.
IT shares will be under watch
After the good results of TCS, focus will remain on IT stocks. Now there are two possibilities – first, after the recent rally, some investors may take profits. And second, since the stock has been weak this year and is coming off 52-week lows, the recovery may continue.
After TCS results, shares of Infosys and Wipro listed in the US market are also up by 1%. Also, the Prime Minister Narendra Modi Has spoken to US President Donald Trump and trade was also discussed. Its effect can also be seen in the market.
Slowdown in banking stocks
Amidst the IT boom, Nifty Bank looked a bit quiet this week. Although the index made a ‘lower high’ on Thursday, it also recorded a ‘higher low’ and managed to stay above 56,000. Below this level remains support, while above, the range of 56,280-56,300 remains a hurdle at the moment.
If Nifty Bank closes above 55,589, it will end the week with gains for the fifth time in the last six.
Expert opinion on Nifty
Om Mehra of SAMCO Securities said, ‘Short-term moving averages still remain strong. Bullish crossover of the 9-EMA and 20-EMA above the 50-EMA suggests that the uptrend continues in the near term. The RSI has reached 63, which shows continued bullishness in the market. If closing is above 56,300, the market may rise to 56,550–56,700.
He said, ‘The lower support is between 55,900-55,800. As long as 55,800 remains, the short-term trend will remain positive and a dip may provide a buying opportunity.
Nifty has registered gains in five out of the last six trading sessions. This week also the weeklip is moving towards the rise. To maintain the uptrend for the sixth consecutive week, the index needs to close above 24,894. On the upside, the first important level will be 25,220, while on the downside, the zone of 25,000 – 25,050 is a strong support.
Short-term trend still positive
Nagaraj Shetty of HDFC Securities said, ‘The short-term trend of Nifty is still positive. If it moves strongly above 25,200, it may go up to 25,450 in the next few sessions. At present its immediate support is at 25,000.
According to Shrikant Chauhan of Kotak Securities, ‘The zone of 25,200 – 25,250 is currently a big hurdle for Nifty bulls. If Nifty breaks above this zone, it can go to the recent high of 25,450 or 25,500.
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