Expect 9000 on Nifty, go long

Expect 9000 on Nifty, go long

 

Technical analyst, Shubham Agarwal of Motilal Oswal Securities with Latha Venkatesh and Reema Tendulkar of CNBC-TV18. He shared his reading and outlook on the market and also gave recommendations on various stocks.

Technical analyst, Shubham Agarwal of Motilal Oswal Securities with Latha Venkatesh and Reema Tendulkar of CNBC-TV18. He shared his reading and outlook on the market and also gave recommendations on various stocks. Below is the transcript of the interview. Latha: What is the Nifty telling you, is it going to continue to rain good news for the bulls? A: In continuation to the view that we shared last Tuesday that we are expecting a fierce upmove to happen on Nifty, which could be to the extent of 1,000 points, around 350 points we have already seen the Nifty moving up and I think 9,000 to 9,100 is the target that we are working out for the Nifty. If you talk about some chart patterns there is a downward sloping wedge, which has been in formation for the past four months and the Nifty has already completed the entire time correction that we were expecting within that pattern and now we expect that this pattern should breakout on the upside and we might see 9,000 to 9,100. Even if you look at some of the momentum indicators, they were placed at the oversold zone and there is a distribution swift that we expect should happen on the momentum indicators for Nifty. So all these things combine, we still reiterate our view on Nifty that the Nifty is definitely headed higher and that is what our study is telling us with the 80 percent probability and with a stop loss of around 8,150 I believe people can look to go long on Nifty. A temporary hurdle could be there around the level of 8,500 but I think after a continuation pattern or a slight time correction that should also get surpassed and 9,000 is the target that we are looking on the index. Latha: Can you give a time indication, 9,000 by when next contract? A: I think one to one and a half months is the timeframe that it should take for this target to get reached. So next contract definitely will see some upside but I am not very sure about the level of 9,000 coming in the next expiry itself. But I think may not be next expiry but then beyond that, one and a half to two months would be a maximum timeframe that we expect Nifty to reach to that level. Latha: You didn’t give levels for Bank Nifty? A: If you look at the set up of Bank Nifty, a very similar pattern but if you talk about absolute levels there then 18,800 is a very temporary minor hurdle that we see on Bank Nifty where we might see a temporary consolidation happening but post the time correction, we are expecting that it should breakout and we are expecting 20,500 to 21,000 as the initial target for Bank Nifty. So one to one and a half months timeframe is again what we are looking at on the banking index and 20,500 will be the initial target for Bank Nifty.


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Source:Moneycontrol.com