“So, as we speak Nifty has fallen by greater than 200 factors from the day’s excessive. At present’s excessive was 26,041 and within the final week we noticed a weak shut on the weekly foundation within the Nifty. There was a capturing star candlestick sample on the weekly chart and final week’s excessive was 26,104. So, we see some consolidation out there,” mentioned Rajani.
He famous that revenue reserving dominated the session, with the rupee’s depreciation towards the greenback including to investor considerations.
“The opposite issue which is cautious is the motion of the rupee towards the greenback. So, rupee has began depreciating towards the greenback once more, so that may be a concern. Yesterday we noticed 40 paisa depreciation within the rupee, in order that has been a number one indicator in latest previous and we must always observe it carefully,” he added.
In keeping with Rajani, Nifty faces a key resistance at 26,104—the earlier week’s excessive—whereas 25,700 serves as a right away assist stage. Till the index breaks out decisively from this vary, he expects the market to stay sideways.
“So at the moment we’re taking a view that except we see a stage above 26,104 which occurs to be the earlier week’s excessive, we must always stay cautious and inventory particular, sector particular due to the end result season we may even see some motion on the both aspect,” he mentioned.Highlighting the resilience in choose sectors, Rajani identified that steel and PSU financial institution shares proceed to outperform.“As we’ve got been discussing steel shares have been doing good, PSU banks have been doing good. So sure, we’ve got to commerce within the outperforming shares and sectors. However so far as Nifty is worried, there’s a consolidation happening,” he defined.
The analyst believes any breakout past this consolidation vary—both above 26,100 or under 25,700—will decide the following directional transfer for the market.
On buying and selling concepts, Rajani expressed bullishness on metals and choose NBFCs, figuring out Tata Metal and IIFL as promising picks.
“We’re bullish on the metals and metals as we speak began in reality giving momentum. So aluminium shares have already run up like Hindalco and Nalco. At present, throughout the steel house I can see some energy constructing within the metal shares. So, Tata Metal is likely one of the inventory which is as we speak’s gainers within the Nifty additionally and appears like that the metal shares are headed larger from right here and the technical setup is kind of convincing,” he famous.
Rajani prompt going lengthy on Tata Metal round ₹180–₹180.5 with a buying and selling cease loss at ₹177 and a short-term goal of ₹187.
He additionally shared a constructive view on IIFL from the NBFC house.
“IIFL is wanting robust. It has damaged out from the consolidation, buying and selling round 515, 516. So, one can go lengthy right here. I might counsel buying and selling cease loss at 505, on the upside I’m anticipating a goal of 540 in subsequent couple of periods,” he mentioned.
Rajani advises merchants to remain cautious, give attention to outperforming sectors, and keep strict cease losses till Nifty decisively breaks out of its present consolidation section.
