First, to understand this recovery that we’re seeing in trade today, do you expect it to last?
Sudeep Shah: What has happened over the last few sessions is that Nifty has widened the gap and we have seen that entire gap sell off many times. But today, for the first time in the last couple of hours, we’ve seen an intermediate pullback in volatility, but by and large, this 23,450, 23,480 zone is holding and all the push into that zone has been bought. Masu. And another one is being bought. The positive factor I am trying to confirm is that today’s banking is stable above the 10-day exponential moving average (about 50,800, 50,820, and apart from that). IT is also helping, and even Reliance has at least stemmed the decline.
I’m going to put all this together with some tips that Ansh mentioned earlier about the 2% drop in open interest in Nifty futures.
So yes, for the next few sessions we can expect the relief rally to continue and I feel that the levels around that are 23,850, 23,950 and on the downside the 23,500, 23,450 zone will be strong support. . And I think it’s not so much that you said it could be the first week where you can close the deal on the green. So, yes, we’re seeing a strong close today, potentially closer to 23,650, 23,700, and we feel like the next three hours could consolidate these gains.
As I mentioned earlier, we are about to reach 23,650, do you expect that to be a hurdle or do you expect it to be easily surpassed by the benchmark?
Sudeep Shah: Given the kind of flow, the momentum that we’re seeing in a lot of large-cap stocks today, I feel like we could surpass this on Monday, if not today. Finally, look after the rebound from the lows near 23,650. There could be some kind of profit taking or something like 50, 70, 80 points, which we saw throughout the day, but then there were bouts of selling pressure of 40, 60, 80 points, and then selling pressure again quickly. . The entire selling pressure is bought in the next 5-minute candlestick.
So overall, let’s hold on to the 23,500 support zone until this zone holds. This rally is likely to continue to the 23,800, 23,900 zone in the next few sessions.
However, sector-wise, we are currently seeing considerable strength in some PSU banking and real estate names. Which of these two baskets would you recommend the most?
Sudeep Shah: If you look closely at yesterday’s fall in the PSU basket, many of these stocks recovered themselves yesterday and if you have to pick up a stock in the PSU basket, it would be Bank of Baroda. I rebounded yesterday.
The 220, 223 zone is an important Fibonacci number and this stock is now back above the 230, 228 level again, which has been an important price point for the past four months, so it is an important support for us. did.
So, if I have to mention one stock from PSU banks, it has to be Bank of Baroda. A unilateral upward movement, a V-shaped recovery, may not be easy, but slowly and steadily we have seen this. The stock price will return to the 250, 255 level, and this may be added step by step as a stop loss of 225 on the downside. And if I were to pick a stock from the real estate pack, it would be Godrej Properties.
After falling from 3300, 3400 in the past month and a half, the stock has retested the important support zone near 2550, 2600 and today too with this 3.5% move, we are witnessing a lot of short covering. Here the stock is again trying to hold above the 200 day moving average near the 2770 odd zone.
Therefore, along with this move, we feel that the 20-day exponential moving average has also been surpassed, suggesting some kind of upward trend change. So, we feel this rally may continue till 2880, 2920 in the next few sessions until 2760 holds Godrej Properties.
