Sameet Chavan of Angel Broking expects Nifty to hit 15,600 soon

The previous week started on a flat note but as the week progressed, our markets managed to extend the lead. Since the last couple of week, the global uncertainty was not letting us move higher but the moment they started cooling off, our market took off and in the process, the Nifty managed to surpass the psychological sturdy wall of 15,000 with some authority. Although there was no major momentum seen in the index, the undertone was bullish and hence, slowly and steadily we marched towards record highs. In fact, with Friday’s extended move, the Nifty went on to post new high on an intra-day as well as closing basis.
 

Till last week, the entire world was so unsure where markets are headed but now; we are at new record highs although the move was not as swift as it generally should be. Until Thursday, primarily the banking and IT were the major contributors to the move. But the sleeping lion Reliance Industries finally seems to have awakened as it single-handedly led markets at new highs on the

concluding day of the week.

Now as far as levels are concerned for Nifty, 15,600 is the immediate point and above which there is no major level visible before the yet another milestone of 16,000. But it would be difficult to gauge whether the extended move from hereon would be similar (slow and steady) in nature or it would have some faster legs in between. On the flipside, 15,300 – 15,150 – 15,000 are to be considered as immediate supports.

Sectorally, one after another different themes are expected to play out well and it’s better to stick to stock specific approach; because, the low hanging fruit is already gone and from hereon it would not be easy at all to do a stock picking. The banking has been a bit inconsistent of late but we still believe that this heavyweight space has lot of potential and is likely to drive markets at higher levels. Despite having highlighted lot of positive factors, we would advise traders not to get complacent. Hence, it’s better not to get over leveraged and should follow strict stop losses for existing positions.

Stock recommendation:

Orissa Minerals Development Company (OMDC)

View – Bullish

Last Close – Rs. 2767.85

This stock has literally not done anything for last 8 – 9 months as it’s been vacillating within a small range all this while. Last Thursday, the prices finally managed to burst through its long congestion phase. If we take a glance at the volume activity, more than average daily volumes are clearly visible. On the subsequent session, we witnessed a minor correction which can be construed as a pullback move towards the breakout point and hence, should be considered a good buying opportunity. We recommend going long for a short term target of Rs 3,050. The stop loss can be placed at Rs 2,550.
 

Piramal Enterprises (PEL)

View – Bullish

Last Close – Rs. 1785.90

After seeing a spectacular recovery from March 2020 fiasco, the stock finally took a breather around the ‘200-SMA’ on the weekly chart. The stock prices underwent some time wise as well as price wise correction over the past three months. However looking at past few weeks’ price action, it appears that the stock has cemented its position around the previous breakout point of 1600. This coincided with the rock solid support zone of the weekly ’89-EMA’ as well. Earlier, we witnessed a first sign of strength and with last week’s strong up move; our anticipation has turned into a confirmation now. It’s already half way

through our previous week’s target but we revised it to now Rs 1,950 which looks achievable in days to come. The stop loss shifts slightly higher to Rs 1,680.

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Disclaimer: Sameet Chavan is Chief Analyst - Technical & Derivatives at Angel Broking. The analyst may have positions in one or more stocks. Views are personal.