Nifty appears primed for breakout but wait for a pull back: Geojit's Anand James
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
Stating that Nifty appears well primed to stage a breakout and embark on the 25460-26200 target, Anand James, Chief Market Strategist, Geojit Investments Limited, neither has the Bollinger band widened, nor has momentum indicators started showing strength to support a vertical rise."We will hence not be chasing prices right away on Monday, but instead wait for a pull back that will hopefully end before 24863. Major downside markers may be placed at 24640."Edited excerpts from a chat:Since the second half of April, Nifty had faced two stages of consolidation, the latter one having stretched over three weeks. Friday's spike has taken us to the upper band of this range. Nifty appears well primed to stage a breakout and embark on the 25460-26200 objective that we have been eying for the last fortnight. That said, neither has the Bollinger band widened, nor has momentum indicators started showing strength to support a vertical rise. This reluctance partly stems from Nifty lagging Bank Nifty , and even the SMIDs. We will hence not be chasing prices right away on Monday, but instead wait for a pull back that will hopefully end before 24863. Major downside markers may be placed at 24640.Our eyes are on 58400, but four hours of consolidation after Friday's initial rise point, point to the fact that we are not in a one way street yet. Adding reason to concern, RSI is still below the levels seen when Bank Nifty hit April's peak. This divergence does not call for a reversal yet, but a cautious approach is warranted at the start of the week, with downside marker placed at either 56400 or 55920.The outperformance in the SMIDs was visible, as more of them rose above previous week's highs when compared to Nifty 50 constituents. While only 50% of Nifty 50 stocks closed above their respective 20 day SMA on Friday, 74.8% of small cap constituents closed above this benchmark on Friday. But while 50% of Nifty 50 stocks closed within the day's high on Friday, only 10% of small cap 250 constituents did so, suggesting that there is caution floating around, and a consolidation may be expected before a vertical rise unfolds.The vertical rise in the last few days had catapulted Cochin Shipyard's prices far beyond two standard deviations from mean, calling for caution. The red hammer candlestick pattern formed on Friday, which is usually a bearish reversal pattern adds to this conjecture. With this in the backdrop, we would be more comfortable with re entry, if a dip unfolds to either 2345 or 2176.AXISBANK (CMP:1194)View: BuyTarget: 1250 – 1340SL: 1098The stock formed its largest green candle since April 22, rebounding sharply from the Supertrend support at 1,146. On the daily chart, the SMIO histogram is showing signs of exhaustion at lower levels and is on the verge of crossing above the zero line—indicating a potential trend reversal.We expect the stock to move toward 1,250 and 1,340 in the near term. All long positions should be protected with a stop-loss placed below 1,098. SHRIRAMFIN (CMP:688)View: BuyTarget: 820SL: 617After nearly two weeks of narrow-range trading, the stock has finally broken out decisively. It has formed a bullish Marubozu candle and witnessed a Supertrend breakout, signaling strong upward momentum.Additionally, the SMIO has crossed above the zero line on both the daily and weekly charts, reinforcing the bullish outlook and pointing toward a potentially larger move in the coming weeks.We expect the stock to move toward 820 in the near term. All long positions should be protected with a stop-loss placed below 617.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
7 minutes ago
- Time of India
Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 25%
Investment Ideas Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 25% Synopsis As the market moves in range with volatility quotients having a bit of bearish bias, the probability that we are going to stay in stock-specific mode is very high. So, more than anything else, two things become important. One is the earnings companies have delivered in Q1. Two is the outlook that managements give in their conference calls. Now, there is a reason we are saying that the market will stay in stock-specific mode for some more time. Read on to find out. Our selected stocks for today depict a strong upward trajectory in their overall average score which is based on five key pillars: Earnings, fundamentals, relative valuation, risk, and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame. Even as the market is volatile, given the fact that we are in stock-specific mode, the street is punishing stocks where companies are not able to deliver earnings. But, at the same time, there is a positive reaction to companies which are able to deliver earnings. So, clearly, more like a secular directional movement, with the street reacting to specific results. Which means it is time to look at individual stocks rather than what the Nifty and Gift ETPrime to your friends Gift a Subscription Now, gift ETPrime subscription to your friend for Free! Gift this Story to your friends Gift a Story Share member-only stories with your friends or family and help them read it for free. FONT SIZE Abc Small Abc Medium Abc Large SAVE PRINT COMMENT Continue reading with one of these options: Limited Access Free Login to get access to some exclusive stories & personalised newsletters Login Now Unlimited Access Starting @ Rs150 Rs120/month Get access to exclusive stories, expert opinions & in-depth stock reports Subscribe Now ET Uh-oh! This is an exclusive story available for selected readers only. Worry not. You're just a step away. Sign In to Read for Free Prime Account Detected! It seems like you're already an ETPrime member with Login using your ET Prime credentials to enjoy all member benefits Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits. Sign in & Access ET Prime Unlock ETPrime's Exclusive Stories Today! Subscribe to gain powerful insights on business, stock market and industry trends. Big Price Drop! Flat 40% Off Avail Offer Student Only Offer Already a Member? Sign In now Already a Member? Sign In now Make profitable decisions with Investment Ideas. Join ETPrime to unlock expert insights and smart market tools for in-depth market analysis. Already a Member? Sign In now Beat the Price Hike: Freedom Sale is Live ! Flat 50% Off Avail Offer Exclusive Student Only Offer Continue with Email Continue with Mobile No. Claim Now Already a Member? Sign In now What's Included with ETPrime Membership 1 Invest Wisely With Smart Market Tools & Investment Ideas Grow your wealth with stock ideas & sectoral trends. Buy low & sell high with access to Stock Score, Upside potential & more. Get to know where the market bulls are investing to identify the right stocks. Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks. Analyze the market sentiments & identify the trend reversal for strategic decisions. Ask your stock queries & get assured replies by ET appointed, SEBI registered experts. 2 Stay informed anytime, anywhere with ET ePaper ePaper - Print View Read the PDF version of ET newspaper. Download & access it offline anytime. ePaper - Digital View Read your daily newspaper in Digital View & get it delivered to your inbox everyday. Wealth Edition Manage your money efficiently with this weekly money management guide. 3 Exclusive Insights That Matter Uncover the truth with our investigative stories Make strategic moves using the real-world case studies Read industry-specific stories to identify emerging trends Spot opportunities with in-depth insights that matter Trump temper on H-1B visas is forcing Indians to do these things to stay put in US What Adani's US indictment means for India Inc's overseas fundraising Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer. Will China's dollar bond sale in Saudi Arabia trump the US in financial world? Huawei launches its own OS to compete with Google and Apple. But can it win beyond China? The problem with lab grown diamonds Why a falling rupee is a better option for the economy A list of top 20 momentum stocks that have delivered massive returns in one year 1 2 3 4 4 Times Of India Subscription (1 Year) TOI ePaper Read the PDF version of TOI newspaper. Download & access it offline anytime. Deep Explainers Explore the In-depth explanation of complex topics for everyday life decisions. Health+ Stories Get fitter with daily health insights committed to your well-being. Personal Finance+ Stories Manage your wealth better with in-depth insights & updates on finance. New York Times Exclusives Stay globally informed with exclusive story from New York Times. 5 Enjoy Complimentary Subscriptions From Top Brands TimesPrime Subscription Access 20+ premium subscriptions like Spotify, Uber One & more. Docubay Subscription Stream new documentaries from all across the world every day. 6 Get Inspired by Grandmasters Martin Shwenk Leadership | Entrepreneurship People | Culture Preview Sample Narayana Murthy Leadership | Entrepreneurship People | Culture Preview Sample Adar Poonawalla Leadership | Entrepreneurship People | Culture Preview Sample Manu Jain Leadership | Entrepreneurship People | Culture Preview Sample Nitin Kamath Leadership | Entrepreneurship People | Culture Preview Sample
Economic Times
7 minutes ago
- Economic Times
Rupee ends flat as importer dollar demand offsets early gains
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The Indian rupee closed unchanged on Monday, as dollar demand from importers offset early gains driven by a softer greenback and recovery in the non-deliverable forward (NDF) rupee opened at 87.5050 but failed to extend gains, ending flat at 87.6600 against Friday's close of said private sector banks stepped in to buy dollars, largely on behalf of importer clients hedging positions amid heightened market volatility, after U.S. President Donald Trump's decision to impose 50% tariffs on Indian the past two weeks, the rupee has come close to breaching its all-time low of 87.95, but intervention by the Reserve Bank of India in both the NDF and onshore spot markets helped prevent a new warned that the steep tariffs - among the highest imposed by the U.S. on any trading partner - could weigh on exports and dampen capital flows into India."Banks are vigilant on creating positions due to the volatility from tariff uncertainty and the corresponding interventions being made by the central bank," said Dilip Parmar, forex analyst at HDFC Asian currencies held largely steady against a softer dollar, as investors stayed cautious ahead of the U.S. July inflation report and the expiry of a U.S. tariff deadline on Philippine peso and South Korean won slipped between 0.1% and 0.3%, while most other regional units were little dollar index was largely flat at 98.254 at 1018 GMT, and has been volatile through the day, on growing expectations of a Federal Reserve rate cut next U.S. inflation data for July, due Tuesday, will be key to gauge the Fed's rate-cut expectations and the dollar's direction.
Economic Times
7 minutes ago
- Economic Times
RBI said to have sold at least $5 billion to boost rupee
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's central bank sold US dollars across both onshore and offshore currency markets this month to prop up the rupee as it weakened toward a record low, according to people familiar with the Reserve Bank of India sold at least $5 billion worth of the US currency, one of the people said, asking not to be identified as the information is private. The RBI didn't immediately respond to an email requesting comment on the matter. If the trend persists, it could become RBI's largest month of net dollar sales since rupee fell to 87.89 per dollar last week, just shy of its all-time low as US President Donald Trump doubled tariffs on Indian goods on Aug. 6 to 50% as a penalty for its purchases of Russian oil. A weaker rupee could fuel imported inflation and strain an already fragile economic intervention suggests a potential shift away from the RBI's previously restrained approach under Governor Sanjay Malhotra, who took office in rupee has depreciated more than 2% so far this year, making it among Asia's worst-performing currencies. Roughly half of that drop came in the past two weeks after it became evident Trump was planning to increase the tariffs.'The recent RBI intervention seems to have more to do with their dislike of the volatility in the exchange rate,' said Dhiraj Nim, currency strategist at Australia and New Zealand Banking Group Ltd. The rupee traded steady at 87.62 per dollar on multiple occasions last week, the central bank was seen stepping into the offshore market just before domestic currency trading began at 9 a.m. Mumbai time, according to two of the people familiar with the matter, who declined to be identified as they aren't authorized to speak on on so-called non-deliverable forwards allows the central bank to guide the rupee's trajectory without having to sell large volumes of dollars outright. The central bank heavily relied on this strategy last RBI's latest foreign-exchange reserves data also point to increased intervention, with the stockpile falling by $9.3 billion, the steepest drop since November, to $689 billion in the week through Aug. 1. Part of the decline may reflect valuation changes in global currencies, not solely the central bank's dollar sales or purchases.
