By Ajit Mishra
Participants, particularly merchants, actually had a tricky time within the April sequence because the benchmark oscillated in a broader vary and eventually settled with a lower of over a %. Global components like the potential of quicker than anticipated tightening by the US Fed, geopolitical rigidity between Russia-Ukraine and re-emergence of COVID in China, and so forth. proceed to weigh on the sentiment nevertheless shopping for in selective index majors capped the draw back within the last weeks.
While the worldwide narrative has not modified a lot but and the start of the earnings season on the home entrance can be portraying a combined image thus far. Let’s attempt to gauge what May month has in retailer for Nifty 50 and Bank Nifty and among the shares which look promising for positional trades.
Nifty (CMP:17,245): It has been buying and selling in a broadening declining formation for the final six months and at the moment hovering across the essential help zone of the long run transferring common(200 EMA), after testing the higher band of the vary round 18,150 ranges in early April.
Going forward, we consider the 16,800 stage would act as a make or break zone. A decisive breakdown would strengthen the bears and will end in a gradual decline in the direction of 16,400 or decrease within the coming weeks. In case of a rebound, the 18,000 zone would act as a stiff resistance.
Bank Nifty (CMP: 36,442): The banking index traded largely in sync with the benchmark in April month and eventually settled on a flat be aware. Currently, it’s buying and selling in a congestion zone across the transferring averages ribbon on the every day chart. To regain energy, the banking index ought to reclaim the 37,000 zone decisively which may gas the restoration to 38,000-39,500 within the following weeks. In case of a breakdown beneath 35,500 zone, the strain might resume which can end in retesting of 34,000 stage.
Amid all, we consider shares like ACC, Asian Paints, Bharti Airtel, Coromandel Fertilisers, Dabur India, Kotak Mahindra Bank, TVS Motors, UPL and Voltas have the potential to do properly within the May sequence.
(Ajit Mishra, VP — Research, Religare Broking, Views expressed are the writer’s personal.)
Source: www.financialexpress.com”