Rajesh Palviya of Axis Securities recommends 4 stocks to buy or sell this week
Indian equity indices fell substantially in Friday’s trade ahead of the major Union Budget 2023 and the US Federal Reserve interest rate decision scheduled for this week. The Nifty fell to 17,604.35 levels, down 1.6% or 287.60 points, and the Sensex fell to 59,330.90, down 1.45% or 874.16 points. In spite of differing indications from the global markets, Indian equities ended lower on Friday, with the Nifty down by 1.3% and the Nifty Mid Cap and Nifty Small Cap down by 1.5% and 1.2%, respectively. The worst loser, Nifty PSU Bank, fell 3.6% and was followed by Nifty Bank down by 2.5% and Nifty Pvt Bank down by 2.3%. Analysts anticipate that in the upcoming sessions, bolstered by US monetary policy and the trend of the US dollar, market volatility could intensify as the Union Budget 2023 and ongoing 3QFY23 earnings season are expected to impact the markets.
Nifty Outlook
Rajesh Palviya, VP – Technical and Derivative Research, Axis Securities said on the weekly chart, the index has formed a Bearish candle which has engulfed its previous week’s move forming a “Bearish Engulfing” candlestick formation, which is a bearish pattern. The index breaks below four weeks of consolidation between the 18300-17800 range.
The chart pattern suggests that if the index breaks below the 17500 level, it may witness selling, taking the index towards 17300-17100. However, if the Nifty crosses and sustains above the 17800 level, it would witness buying, leading the index towards 18000-18200 levels. This week, we expect Nifty to trade in the 18200-17100 range with a negative bias. The weekly strength indicator RSI is moving downwards and is quoting below its reference line, indicating a negative bias.
Bank Nifty Outlook
Rajesh Palviya said on the weekly chart, the index has formed a sizable Bearish candle which has engulfed its previous week’s move forming a “Bearish Engulfing” candlestick formation, which is a bearish pattern. The chart pattern suggests that if the index breaks below the 40100 level, it may witness selling, taking the index towards 39900-39600.
However, if Bank Nifty crosses and sustains above the 40500 level, it would witness buying, which would lead the index towards 40800-41000 levels. This week, we expect Bank Nifty to trade in the 41000-39600 range with a negative bias. The daily and weekly strength indicator RSI is in bearish mode and sustaining below the 50 mark, which supports bearish sentiments ahead.
Rajesh Palviya stock recommendations for coming sessions
Rajesh Palviya of Axis Securities has recommended these stocks to buy or sell in the coming sessions.
1 ITC: Buy at ₹345, target price ₹360, stoploss ₹338
2. IndusindBank: Sell IndusindBank future ₹1120, target price ₹1080, stoploss ₹1155
3. BDL: Buy at ₹933, target price ₹980, stoploss (SL) ₹910
4. SupremeInd: Buy at ₹2535, target price ₹2620, stoploss ₹2470
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.