Nifty Short , Medium & Long Term View-04-Nov-23 to 08-Dec-23Nifty Short , Medium & Long Term View-04-Nov-23 to 08-Dec-23
Nifty closed at 20227( Prev Week close 19794) and touched low & high of 19807 & 20295.
Market Decisively crossed the 20000 and crossed the all time high (20218) and touched 20295.
Pre poll survey result and GDP Q2 growth boosted the market.
Monday will be gap up opening due to the state elections results. Current government having confidence in sailing through next year parliament elections.
Hence one of the major risk expected is almost resolved.
Market expected to move up to 20500 initially.
RSI and stochastics levels nearing the overbought zone ( 75% & 97 % Respectively).
Nifty- Short Term
Resistance at 20450-20600 zone marked with blue circle.
Those are trend line resitances and
also the 20500 Target ( Red Horizontal Line) resistance is dervied from % of difference between pre covid peak ( 12400 ) and covid low (7500 ) and that % is applied from the 12400 ( Pre covid peak) is calculated to 20500.
As Market near to overbought zone a downward movement to 20000 / 19850 is possible in coming weeks.
Market is in overbought zone.Complete 30% Profit booking as specified before around 20450- 20600 and better to be with cash.
Support at 20000, 19850, 19691 & 19528
Nifty Medium Term & long Term -
Market need to decisively close above 20570 to reach 21000 target.
Support at 19345, 19230, 19164, 19000
Long Term
market range bound between 21000 to 18800 till elections are completed.
Comment :
Market Volatality expected to continue till Q3 results, Feb budget & till elections in 2024 (Apr-May).
Banks gave good results except HDFC bank due to merger. Capital Goods and other companies posted average to average results. most of the stock screening shows to buy banks and NBFCs. only few stocks from capital goods and other stocks are showing promising results. pharma stocks gave outstanding returns and it is just starting. Stock Pick based on the Q2 result and projected growth of the stock is necessary.
Q3 Results & Policy change need to be looked into for next year growth of Nifty.
