Nifty 50 and Sensex continue to remain in bullish territory, hitting fresh all-time highs repeatedly. Technical analysis of the Nifty 50 index shows strong momentum is likely to continue and bulls may remain dominant on Dalal Street as the index moves towards 17,500 points and eventually 17,750, domestic brokerage and research firm Motilal Oswal said in a note. “RSI oscillator is also showing strength on daily, weekly and monthly scale, suggesting continuation in bullish momentum in coming weeks too,” they added. Nifty set a fresh all-time high yesterday at 17,225 while Sensex soared to 57,918 for the first time ever yesterday.
“We are expecting the index to move towards 17,500 and then 17,750 zone, continue to remain Bullish and use any meaningful decline as a buying opportunity,” analysts at Motilal Oswal said. During the previous series, Nifty 50 gained nearly 900 points, helped by rallying large-cap stocks. For the current series, analysts say that major support is placed at 16,750, and then 16,500. For Bank Nifty, if it holds above 36,000, the next leg of rally may be triggered. “Going forward, support can be seen around 35,750 then 35,250 zones. While on the flipside hurdle can be seen around 37,000 then 37,700 zone,” they added.
Target price – Rs 800
Banking major ICICI Bank is seen as a potential ‘buy’ from a 2-3 month time horizon. “ICICI Bank is in overall uptrend and forming higher highs – higher lows structure on weekly scale. It has formed a bullish candle on weekly and monthly scale and outperforming the Bank Nifty index,” Motilal Oswal said. ICICI Bank share price has gained more than 6% in the last one month.
“Considering current chart structure, we advise traders to buy the stock for an up move towards Rs 800 per share with a stop-loss of Rs 670 apiece,” analysts added. ICICI Bank trades at just above Rs 700 per share.
Target price – Rs 5,650
“Divis Lab has given consolidation breakout on the weekly scale and forming higher highs – higher lows on a monthly scale from past five months,” the brokerage firm said. Divi’s is trading well above its short term moving average and momentum is likely to continue. Analysts added that Momentum Oscillator RSI is placed positively along with a set of moving averages on both weekly and monthly charts.
“Looking at overall price structure, we are expecting the stock to move towards Rs 5,650. Thus, we advise traders to buy the stock on dips with a stop-loss of Rs 4,800 per share. This trade has been advised with a 2-3 month time horizon.
(The stock recommendations in this story are by the respective research and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)