Nifty Short, Medium & Long Term : 21-Oct-24 to 25-Oct-24Nifty Short, Medium & Long Term : 21-Oct-24 to 25-Oct-24
Nifty closed at 24854 (Last Week 24964) and touched high & low of 25185-24557
Last week Market was down by more than 700 points but recovered on last day of trading of the week. FII pulled out money and invested in China more than 77000 Cr till date in Oct 2024.
Nifty Bank 52094 ( last week 51179), touched the target of 54000 as proposed 2 months before to 54400 all time high and fell down, it started picking again, maintain support at 49900. Continue to Buy on dips.
RSI ,Macd and stochastics levels are down. Caution to be emphasized as still further room to go down. Q2 results, Global news( US Election results and Relaxation of middle east tension) awaited which will pave way for more clearer path in market.
Nifty 24854 Short term ( Short Term : neutral) There will be comeback rally, however
Nifty short term resistance 25100 & 25376
Support at 24560 (last week low)
Medium Term next target is 25750 ( if move up decisively above next target is 25370), 26268 ( all time high), 26968
Medium term Support 24290 and 23885.
Long Term : Nifty have a target of 27740, 28000 & 28190 ( Fibonacci Resistance). Support at 22800
US started reducting fed rate as expected in Sep 2024, expected it shall continue in reduction of interest rate in next year.
Caution was emphasized on Nifty for last 3 months as nifty PE ( Currently 23.4) is in high level with high valuation especially in Mid cap & Small Cap. Mutual Funds SIP shall be invested as the goal is for more than 5-10 years at this critical period as the valuation is high.
Those with lesser risk can sell partial portfolio ( 20-30%) stocks which have less valuation and can wait for opportunity to buy when nifty dips upto 22800.
Deploy stop loss of upto 7%-8% which is crucial. More Risky players can have stop loss of trend line resistance of 23750 as shown in the chart.
Fundamentally good stocks can be added as it posted good results on every dip in finance stocks such as CAMS, UTI AMC , HDFC AMC, Manappuram Finance, suryoday small fin, Motilal Fin, Chola Finance, Dr Reddys, Natco Pharma, Cipla, JK Cements, Biocon, Persistent Sys, PI Ind, PNC Infra and Ashoka Buildcon, ICICI Bank, HDFC Bank Indian Bank & Punjab National Bank.
Stock Picking is needed at current scenario in Bank, auto, Pharma stocks.
Based on the Q1 results, following stocks can be added to portfolio: There is a possibility of dip to 21000-22000, hence please buy in parcels and every dip of Index and every dip of individual stocks (2-5% of portfolio on each purchase for long term) The above stocks mentioned are based on analysis of top line & Bottom line performance, hence based on the risk and portfolio mix one can add after analysis.
Nifty IT 42106 ( last week 42335 ) indices marginally decreased last week, Q2 results will pave way for the clear direction.
