Technical Analysis Report for Nifty and Three Buy Calls
The Nifty index has been on a strong uptrend in the past three weeks, making a new all-time high at 20,222. However, the most recent trading week saw the index retracing some of those gains, finding support at the 50 percent Fibonacci retracement level from its surge from 19,223 to 20,222.
On analyzing the weekly charts, the index is observed to be trading below its previous week’s low. This suggests a temporary halt in its dominant uptrend. Immediate support stands at 19,605 (representing the 61.8 percent Fibonacci level), followed by a critical support level at 19,400.
On the upside, the index faces resistance at 19,878 (corresponding to a gap resistance) and then at 20,222, its recent peak.
Given the technical indicators and market sentiment, we anticipate the Nifty to oscillate within the 19,605 to 19,878 range over the next few sessions.
Three Buy Calls for Next 2-3 Weeks:
- Havells India (LTP: Rs 1,413.35): The stock has been on an impressive ascent, demonstrating unwavering positive momentum. A recent emergence from the Symmetrical Triangle pattern underscores its persistent bullish stance. The MACD on the weekly charts is ascending steadily above the zero line, emphasising sustained upbeat momentum. Going ahead, we expect the prices to move higher till Rs 1,600 levels where the stop-loss must be Rs 1,375 strictly on the closing basis.
- KSB (LTP: Rs 3,122.35): The stock showcases a consistent pattern of higher highs and higher lows, supported by an escalating volume trend, hinting at a substantial buildup driving the prices. In late July 2023, the stock notably broke through the Cup & Handle pattern, signaling the onset of an upward trajectory. Currently, it is trading stance above both the 12 & 26-week EMA (exponential moving average), solidifying its bullish trend. Further endorsing this positive outlook, the MACD has registered a positive crossover, emphasising the prevailing upward momentum. Going ahead, we expect the prices to move higher till Rs 3,500 where stop-loss must be Rs 2,830 closing basis.
- Gujarat Ambuja Exports (LTP: Rs 296.80): The stock experienced a measured retracement after reaching an all-time high in mid-April 2023. Notably, the stock avoided patterns of lower highs and lower lows, reflecting an underlying bullish sentiment in its pricing. In the recent week, GAEL displayed a breakout from the Symmetrical Triangle pattern, signalling a likely continuation of its previous upward trend. Moreover, with the stock consistently trading above the 12 & 26-week EMA, there’s a reinforced confirmation of its ongoing bullish trajectory. Going ahead, we expect the prices to move higher till Rs 340 where the stop-loss must be Rs 285 on the closing basis.
- 22 Sep
Maruti Suzuki Stock Gains on Bullish Stance from Global Brokerages
Maruti Suzuki stock gains on bullish stance from global brokerages Shares of Maruti Suzuki India surged on Friday after global brokerages Citi and Morgan Stanley maintained bullish stance on the counter. Both brokerages cited the company's improving product mix and attractive valuation as key reasons for their optimism. In addition, Maruti Suzuki reported strong sales performance in August 2023, with total domestic sales jumping 14 percent year-on-year and sale of utility vehicles jumping 118 percent year-on-year. Overall, the bullish stance from global brokerages and the company's strong sales performance are providing a boost to Maruti Suzuki stock.
- 22 Sep
PNB Gilts Hits Upper Circuit on Inclusion of Indian Bonds in JPMorgan Index
Shares of PNB Gilts hit upper circuit on September 22, 2023, following news that India's inclusion in JPMorgan's bond index is seen driving billions of dollars of inflows. The index provider will add Indian bonds to its widely-tracked emerging market index starting June 28, 2024. PNB Gilts is a primary dealer in government securities and other fixed-income instruments. The inclusion of Indian bonds in JPMorgan's index is expected to attract significant foreign inflows, which is likely to benefit PNB Gilts and other primary dealers in government securities.
- 22 Sep
Indian Bond Markets to Remain Stable in Near Term After JPMorgan Inclusion
Indian bond markets are expected to remain stable in the near term after JPMorgan's inclusion of India in its widely tracked emerging market debt index, according to BlackRock's head of Asia Pacific fixed income, Neeraj Seth. Seth expects inflows of around $20 billion to $25 billion into India after the maximum weight threshold is achieved on the GBI-EM index. Given the size of the global government bond market, this is relatively small and is unlikely to have a significant impact on volatility.
- 22 Sep
Indian market drops on September 22 despite inclusion of Indian bonds in JP Morgan index
Indian benchmark indices Sensex and Nifty fell for the fourth consecutive day on September 22, despite the inclusion of Indian bonds in the JP Morgan Government Bond Index-Emerging Markets (GBI-EM) global index suite from June 2024. The market is expected to remain volatile in the near term, with key support at 19,600 for Nifty.
- 22 Sep
Indian Rupee Appreciates on JPMorgan Bond Index Inclusion
The Indian rupee appreciated against the US dollar on Friday, as the inclusion of India in the JPMorgan bond index boosted investor sentiment. The rupee settled 19 paise higher at 82.94 (provisional) against the previous close. Analysts expect India’s inclusion in the bond index will lead to a direct inflow of USD 20-25 billion in the debt over the 18-21 months. However, the impact of the announcement may not be sustainable amid a rally in the greenback and foreign fund outflows from domestic equities.