Nifty Short, Medium & Long Term view 26-Aug-24 to 30-Aug-24Nifty Short, Medium & Long Term view 26-Aug-24 to 30-Aug-24
Nifty closed at 24823 ( Last week 24413 ) and touched low & high of 24524-24866
As suggested last week, market bounced back and moved up and near to the initial line target of 24900 as shown in the chart.
Post Indian Elections, reduction of interest rate by RBI is expected on a staggered manner till it reaches 5% ( in span of 2-3 years ) in line with US fed rate reduction expected in Sep 2024. US President Election scheduled in Nov 24. Until then Market may correct if any global news upto19500 as there is strong multiple fib support in this range.
RSI and stochastics levels moved up last week (60% and 90% respectively). MACD level crossed cross the signal last week. Expecting market to move up in short term.
Market have high potential to touch psychological 25000 Mark/ 25200 ( Fib Resistance)
Nifty 24823 Short term (Short term up)
Nifty short term resistance 25075 ( New Peak) and 25224.
Support around 23850 ( trend line support and recent low).
Medium Term 25224( Fib Resistance) as mentioned above, if it crosses then next target is 25542 ( Fib Resistance) which is % of difference between Mar 23 low and Sep 23 high low from Sep23 high shown as vertical line. Caution to be emphasized once market reached medium term target.
Medium term Support - 22700 to 22800
Caution was emphasized on Nifty for the past 2 month as nifty PE is in record high level with high valuation and very less potential to grow further.
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% ( i.e Nifty 22800 level) which is crucial. More Risky players can have stop loss of trend line resistance of 23750 as shown in the chart.
Long Term (1-3 years) Nifty have a target of 27000 ( Fibonacci Resistance). If market close above 25580 decisively. Support at 21750 ( Trend line support)/ 20800 ( Fib & Trend Line Support) 20225 / 20000 ( Fib Resistance),19500
Nifty bank 50933 (Last week 50494) - Index have target of 54000 in medium term and support at 49900
Stock Picking is needed at current scenario in Bank, auto, Pharma stocks.
Newly added stocks to buy are PI Ind, PNC Infra and Ashoka Buildcon. As insisted for last 3 months Banks & Finanace Stocks are really good and will give good results, as expected Q4 results are good especially for ICICI Bank, HDFC Bank, Indian Bank & Punjab National Bank.
Fundamentally good stocks can be added as it posted good results on every dip in finance stocks such as Manappuram Finance, suryoday small fin, Motilal Fin, Chola Finance, Other stocks like Dr Reddys, Natco Pharma, Cipla, JK Cements, Biocon, Tanla & persistent Sys can add these stocks 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 41089 (40878) indices dipped 37848 in last month, bounced back and reached 41830 last week. Recovery of US stock market and awaiting FED rate cute decision pushed the US stocks up and followed by Nifty IT Index.
