Nifty is expected to move higher from the current levels. Banking and FMCG stocks are likely to outperform. Nifty has got strong support at 11,660 and the same can be kept as a stoploss in long positions. Upside targets for Nifty are seen at 12,250 and 12,430. The important development which gives the confidence that the markets would move up rather than down, is the technical setup of BankNifty, which has closed at the highest level since 28 August, 2020. BankNifty index has broken out from the “Flag” pattern on the daily chart, which indicates a fresh momentum buying the Banking stocks. Next Resistance for BankNifty is seen at 25,232, which is almost 1,000 points away from the current levels. With the stoploss of 23,750, traders should remain bullish on BankNifty.
BUY BANDHAN BANK (Rs 319): | Target: Rs 349 | Stop-loss: Rs 306
The stock price has given Flag pattern breakout on the daily charts. Volumes have gone up along with the price rise in the recent past. The stock has got strong support at 306 odd levels, where 20, 50 and 100 day EMAs coincides. RSI and MACD are also showing strength in the current uptrend. Banking sector is likely to outperform in the short term.
BUY COLPAL (Rs 1,465): | Target: Rs 1560 | Stop-loss: Rs 1.400
Nifty FMCG Index is on the verge of breaking out from the crucial trend line resistance placed at 30,200. Colgate Palmolive carries high weight in the Nifty FMCG Index and is likely to participate in the rally which has resumed in the sector. The stock has taken out crucial resistance of 1,470, derived from the previous top on the daily charts. The stock rose almost 3 per cent, with significant jump in volumes, on October 19, 2020. The stock price has broken out from the last three weeks of consolidation.