“For now, the bias is still positive till the time we hold that 16,750-16,800 mark and the momentum shifts towards extreme positivity at about 17,400. So, right now, we are still bang in the middle of the range, waiting for further breakouts,” says Nooresh Merani, independent technical analyst. Edited excerpts:


This week, we have seen a tad bit of downtick coming in for the Nifty, but going ahead where do you see Nifty? Do you see it breaking out of that range and go past the 17,300 decisively? What else are you reading in the charts when it comes to benchmarks in particular?
The market has gone nowhere for quite some time now. For reference, in October last year we were at 17,000, in March and April this year, too, we were at 17,000, and today we are at 17,200 – that has been the case. In the near term, last week we were at 17,100-17,200 – still at the same place. So, in terms of trend, some consolidation is happening for some time. But, if yesterday’s recovery in the US markets is followed up with a move beyond 30,450 over the next couple of weeks and the same way once 17,400 on Nifty is done, the momentum comes into play.

For now, the bias is still positive till the time we hold that 16,750-16,800 mark and the momentum shifts towards extreme positivity at about 17,400. So, right now, we are still bang in the middle of the range, waiting for further breakouts. But, at these prices it is a risk reward ‘buy’, wherein you keep a stop-loss at 17,080, take a 100-point risk and go ahead long on the Nifty and watch for the move eventually above 17,400 towards 17,600-17,800.

What are your top bets for the coming week?

I continue to like the banking space, which is where the top two picks come from. First is a ‘buy’ on Axis Bank. The stock is setting up for a breakout above that 820-mark, which is the resistance for the last one, two, three years. Once that breakout comes into play, you are looking at a target price of Rs900 in the short- to medium-term. So, I like the stock at the current levels as well as add more above 820-825.

Second, is a ‘buy’ on RBL Bank, which is a little early in terms of the breakout. The bigger breakout comes for the stock at above 130 levels and the stock has seen a correction all the way from 650 levels a few years ago down to sub-100 levels back in June this year. In this June, it was lower than the March 2020 prices and from that it has made a comeback. The recent high was around that 130-135 mark, once that is crossed it should be a bigger breakout.

Also, in the last three to four days it has shown good strength even in a falling market. So a stop-loss at 121 with an initial target price of Rs 140. But, it could be a surprise in the medium term.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)