In the previous week, the Nifty came close to testing the 20000 level, reaching a high of 19991. It closed with a positive gain of 0.92% at 19745, while the Sensex reached a new high of 67619 and closed higher by 0.94% at 66684. Similarly, the Banknifty also achieved a new high of 46369 and closed at 46075 levels. Despite the overall positive trend in the equity market, the IT sector disappointed due to Infosys’ below-expected results, which exerted pressure on the markets. Additionally, reliance’s results fell below expectations, with a net profit decline of 10.8%.
From a technical perspective, the market is currently in an overbought zone, suggesting the possibility of profit booking at higher levels. The Nifty has strong support at 19500 levels, followed by 19300, with resistance at 20000. Similarly, the Banknifty has support at 45400 and 44500 levels, with resistance at 46800 and 47500 levels, indicating a positive outlook with expectations of the banking sector leading the market next week.
Based on the fundamentals of the economy and the chart structure of Nifty showing a bullish trend, it is anticipated that the Nifty may soon test the 20000 mark. Therefore, a recommendation to buy on dips in the Indian equity indexes is suggested.
Top 5 Stocks for the Week:
Renuka Sugar: It is advised to buy RENUKA SUGAR with a stop loss at 39 and a target of 60. The stock shows a strong breakout on the charts, along with a bullish engulfing pattern and is trading above two months’ high levels.
PNB: The recommendation is to buy PNB with a stop loss at 50 and a target of 85. The stock is trading above three years high levels, showing a bullish chart pattern, and higher top higher bottom formations with substantial volumes.
Ashok Leyland: A buy is suggested for Ashok Leyland with a stop loss at 160 and a target of 220. The stock is trading at lifetime high levels and exhibits a strong chart pattern, bullish candlestick pattern, and robust results, indicating an expected bullish rally.
Grasim: A buy is recommended for Grasim with a stop loss at 1735 and a target of 1950. The stock displays strong momentum, a bullish candlestick pattern, and is trading above eight months’ high levels, indicating fresh buying activity with rising volumes.
NTPC: It is advised to buy NTPC with a stop loss at 177 and a target of 220. The stock has a strong chart with rising volumes, a fresh breakout on the charts, and is trading above two weeks’ high levels.
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Updated: 23 Jul 2023, 10:37 PM IST