Edited excerpts from a chat:
Nifty ended the week round 1.3% greater, however do you suppose Friday’s intra-day volatility indicators that bulls are weakening? Or is 25,000 nonetheless attainable subsequent week?
Commonplace deviation research are certainly pointing to 25,000 and past. Friday appeared extra risky as a result of the robust up-move early within the day—marking a brand new 7-day excessive—did not maintain amid rejection trades. Nevertheless, the shut close to 24,350 mirrored that of the previous six periods. This enables us to retain upside expectations for Monday’s begin. That mentioned, any signal of slipping under 24,280 may point out rising weak spot, although a break under 23,850 can be required to validate a transfer towards 23,670–23,460. The chances of such a decline appear low at this level, however we stay cautious.
Defence shares have been among the many greatest winners amid rising tensions with Pakistan. Will the rally maintain?
Defence shares, which have been on the rise since final week, confirmed indicators of weak spot because the week progressed, with the typical RSI topping out at 68. The slowdown in momentum suggests revenue reserving might proceed early subsequent week. Nevertheless, the weekly common RSI close to 60 nonetheless helps a bullish setup. The perfect technique can be to enter on anticipated pullbacks. Shares like Knowledge Patterns, Mazagon Dock, GRSE, HAL, BDL, and Cochin Shipyard could possibly be good bets on dips. BEL might outperform.
Sonata Software program was the most important weekly gainer amongst BSE500 shares. Do you anticipate revenue reserving forward?
A multi-week consolidation breakout indicators potential for the uptrend to increase towards 490–530. The query shouldn’t be whether or not to re-enter, however the place. Friday’s shut under Thursday’s low signifies exhaustion within the near-term uptrend. We favor shopping for on dips with a stop-loss under 370. Nevertheless, if the dips are reduce brief and the inventory swiftly closes above 456, threat capital could also be allotted.
Whereas the Nifty has recovered half its losses for the yr, the Nifty Smallcap 250 index continues to be struggling. What do the charts counsel?
On Friday, 62.4% of small-cap constituents closed above their 50-day SMA, in comparison with 70.8% the earlier Friday. Comparable declines have been seen with the 20-day SMA: 47.6% versus 66.8%. This highlights the index’s ongoing wrestle. The weekly chart exhibits a night star sample, reflecting weak spot, however the look of a doji final week suggests cautious cut price looking. An additional 2–3% dip may enhance threat urge for food.
Prime buying and selling concepts for the week:
Sumitomo Chemical (SUMICHEM) – LTP: Rs 524View: BuyTarget: Rs 565Stop-loss: Rs 493After reversing from April highs, the inventory discovered patrons close to the horizontal assist zone of Rs 500, from the place a reversal is underway. The MACD histogram indicators exhaustion, and the SMI oscillator is nearing a crossover above zero, indicating a bullish shift. Count on a transfer to Rs 565 within the coming weeks. Keep a stop-loss under Rs 493.
World Well being (MEDANTA) – LTP: Rs 1,202
View: BuyTarget: Rs 1,270Stop-loss: Rs 1,164After a decline since mid-April, the inventory has fashioned a Dragonfly Doji on the every day chart, accompanied by indicators of MACD exhaustion—hinting at a possible reversal. We anticipate a transfer towards Rs 1,270 within the subsequent few days. Keep a stop-loss under Rs 1,164.
