Edited excerpts from chat:
Nifty made the week around 1.3% higher, but do you think the volatility signal during the day on Friday is weakening the Bull? Or is it still possible to get 25,000 next week?
Standard deviation studies actually refer to over 25,000. On Friday, strong up moves looked more volatile early in the day to win a new seven-day high to maintain amid rejection trade. However, the close to 24,350 ending reflects that of the past six sessions. This will allow you to maintain the opposite expectations at the start of Monday. That said, we believe that signs of slipping below 24,280 are necessary to verify breaks below 23,850 to 23,670-23,460. At this point, this possibility of decline seems unlikely to occur, but we remain cautious.
The defense stock was one of the biggest winners amid rising tensions with Pakistan. Will the meeting be maintained?
Defence stocks, which have been rising since last week, tops with an average RSI of 68, showing signs of weakness as the week progresses. The slower momentum suggests that profit bookings could continue early next week. However, the average weekly RSI of nearly 60 still supports bullish setups. The best strategy is to take part in the expected pullback. Stocks such as Data Patterns, Mazagon Dock, Grse, Hal, BDL, Cochin Shipyard, and more could be a good bet on the dip. Bells could outperform.
Sonata Software was the largest weekly winner of the BSE500 stocks. Do you expect to book profits in advance?
The multi-week consolidated breakout signal that could extend the uptrend to 490-530 is the question isn’t whether to re-enter, but where you are. The low end of Friday on Thursday shows fatigue in the short-term uptrend. I prefer to buy with dips at stop losses under 370. However, if the dip is short and the inventory closes quickly beyond 456, risk capital may be allocated.
Nifty recovered half of his losses that year, but the Nifty Small Cap 250 Index is still struggling. What does the chart suggest?
On Friday, 62.4% of small-cap components were closed above the 50-day SMA, compared to 70.8% on the previous Friday. A similar decline was seen in the 20-day SMA: 47.6% vs. 66.8%. This highlights the continuing struggle of the index. The weekly chart shows an evening star pattern reflecting weakness, but the appearance of doji last week suggests careful bargain hunting. Another 2-3% DIP may improve risk preference.
Top trading ideas of the week:
Sumitomo Chemical (Sumichem) – LTP: Rs 524
View: Purchase
Target: Rs 565
Stop Loss: Rs 493
After turning back from the April high, the stock found that the buyer was ongoing near the horizontal support zone of Rs 500. The MACD histogram shows fatigue, and the SMI oscillator approaches a crossover above zero, indicating a bullish shift. Hopefully we will move to Rs 565 in the coming weeks. Maintains stop losses below Rs 493.
Global Health (Medanta) – LTP: Rs 1,202
View: Purchase
Target: Rs 1,270
Stop Loss: Rs 1,164
After decreasing from mid-April, inventory forms Dragonfly Doge on daily charts, with signs of MACD fatigue and assumes potential inversions. A move to 1,270 rupees is expected in the coming days. Maintains stop losses below Rs 1,164.
