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    Next upside target for Nifty to be around 25,800-25,850: Nagaraj Shetti

    Synopsis

    FMCG has moved up quite a bit at least at the higher levels. I am expecting some more consolidation from the higher levels in FMCG index, especially leading FMCG stocks. But if you look at the IT, that still has got a momentum. Recently, we have seen some consolidation moment, minor downward correction. After that, it moved up again and placed at the higher levels. More upside is likely in the IT sector ahead.

    Nagaraj Shetty-1200ETMarkets.com
    They have moved up very well after the consolidation and I am expecting more upside in the near term.
    "Any dips, any consolidation is going to be a buying opportunity. There is a hurdle around 25,400, 25,500 levels and one or two days of consolidation, that resistance is going to be taken out on the upper side, what I am expecting," says Nagaraj Shetti, HDFC Securities.

    What technically had triggered yesterday's rally, any short covering that we had seen given the fact that it was a weekly expiry as well yesterday?
    Nagaraj Shetti: Nifty has been in a sharp uptrend since yesterday. What we have seen technically, market was showing a rebound action, though placed at the higher levels.

    It was showing a rebound action. Another one thing that previously we have seen some downside breakout of the support, post that market has not given any follow-through weakness.

    The overall chart pattern prior to yesterday was indicating the inherent strength in the market, that has exploded yesterday with the 400-odd points rally. The overall trend remains positive in the market.

    Any dips, any consolidation is going to be a buying opportunity. There is a hurdle around 25,400, 25,500 levels and one or two days of consolidation, that resistance is going to be taken out on the upper side, what I am expecting.
    And on that upside breakout, I am expecting the next upside target for the Nifty is around 25,800 to 25,850 levels.
    Growfast



      What about Nifty Bank because for the last couple of days, that is where the strength has been? Which stocks within that, would you recommend and what is the next level to watch out for, for Bank Nifty?
      Nagaraj Shetti: Yes, obviously, Bank Nifty was lagging earlier. Now, it has taken its upside momentum. It is now breaking above the 51,800-52,000 resistance level, which was being held since last couple of weeks. And once it breaks above 52,000 levels, the next target would be around 53,000, 53,200 in the short period of time.

      How is the IT and the FMCG index looking like? A bit on the slow lane today, but they have been buzzing for the last two weeks.
      Nagaraj Shetti: Yes, FMCG has moved up quite a bit at least at the higher levels. I am expecting some more consolidation from the higher levels in FMCG index, especially leading FMCG stocks. But if you look at the IT, that still has got a momentum. Recently, we have seen some consolidation moment, minor downward correction. After that, it moved up again and placed at the higher levels. More upside is likely in the IT sector ahead.


      What are your own top individual recommendations right now?
      Nagaraj Shetti: Yes, I have two stocks from a midcap segment. First one is the Poonawalla. Chartically, Poonawalla was in a larger consolidation pattern recently after a sharp downward correction and currently making a strength to move up, formed a higher bottom reversal, placed around 400 to 401 level.

      One can look to buy at this point of time. 425 is going to be the immediate target and one can place a stop loss at 385. And second one is the Rain. If you look at the chart, Rain was in accumulation phase over the last few months and it has broken above decisively from the range as well as the crucial hurdle around 175 level. It is currently trading around 184.50, 185. One can look to buy at this point of time. The upside target would be around 200 and one can place a stop loss at 175.


      Any top recommendations within the housing finance space because all of those stocks are active. Home First is up 11%, PNB Housing up 7%. You also have Sammaan Capital doing quite well, 5% higher.
      Nagaraj Shetti: Yes, chartically, PNB Housing Finance and Bajaj Finance are looking very attractive in the charts. They have moved up very well after the consolidation and I am expecting more upside in the near term.




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      (You can now subscribe to our ETMarkets WhatsApp channel)

      (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

      Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

      Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

      ...more
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