According to Ravi Nathani, an independent technical analyst, one should adopt a 'Buy on Dips' strategy for Nifty Private Bank index, while a 'Sell on Rise' strategy in case of the PSU Bank index.
Among the stocks in focus on Monday, Shree Renuka Sugars looks strong on charts, while Inox Green Energy seems weak.
According to Ravi Nathani, an independent technical analyst, break of 19,336 on the Nifty could usher in a bearish trend.
According to Ravi Nathani, an independent technical analyst, the Nifty FMCG index seems range-bound, while one can adopt a 'sell on rise' strategy for the PSU Bank index.
According to Ravi Nathani, an independent technical analyst, the interim support levels for the private bank index are placed at 23,420, 23,120, 22,900.
On Wednesday in intra-day deals, the S&P BSE Sensex was down 660 points at 66,935, while the Nifty50 had shed a per cent or 190 points to 19,944.
HDFC Bank, Reliance Industries, ICICI Bank, Infosys and ITC collectively hold over 42 per cent weightage on the Nifty 50, and are expected to act as trend setters for the benchmark.
Ravi Nathani, an independent technical analyst, says that despite the need for caution, the market remains generally bullish.
In a past instance, the Nifty PSU Bank corrected over 23 per cent in the following two months after the index entered overbought zone on the monthly scale.
Buy ONGC 190 Call option and simultaneously Sell 195 Call of the September series, recommends Nandish Shah, Sr. derivatives & technical research analyst of HDFC Securities.
According to Ravi Nathani, an independent technical analyst, one should await for buying opportunities in Nifty Metal, whereas in case of Nifty Energy one can look for opportunites to sell.
According to Ravi Nathani, an independent technical analyst, the Nifty Pharma and Auto indices are at critical junctures, hence one needs to watch out for these key levels for planing trades.
Despite the recent downturn, the broader trend for the Nifty SmallCap index is likely to remain positive as long as the index holds above the 12,050-level.
Among individual stocks, Vinay Rajani the technical & derivative analyst of HDFC Securities recommends to Buy Infosys and Sun Pharma.
According to Ravi Nathani, an independent technical analyst, the Nifty FMCG index may trade sideways, while the Nifty PSU Bank index is expected to trade with a positive bias.
According to Ravi Nathani, an independent technical analyst, the Nifty Financial Services index could potentially rally to 20,975, while the Nifty PSU Bank index can gallop to 5,055.
Overall, as many as 464 stocks among the Nifty 500 were seen trading above the 200-DMA highlighting the underlying positive sentiment in the market.
Surpassing 19,910 could potentially lead the Nifty towards resistance levels situated at around 20,180 and 20,464; suggest buying Bank Nifty index on dips, says Ravi Nathani
AIA Engineering and Ashok Leyland look weak on the chartk, while shares of IDFC Bank and REC look ripe for an interim correction, indicate charts.
While the Nifty Metal index seems headed towards its crucial resistance zone, select stocks such as Hindalco, Nalco and SAIL still have the potential to rally up to 15 per cent, charts suggest.