Nifty to remain under pressure, support at 16,800: Analysts

The market continues to be under pressure as any intermediate bounce is getting sold into, while global banking crises and STT hikes are likely to dampen sentiment in the near term, according to technical analysts. The Nifty, however, is expected to find support at 16,800, and stocks such as UltraTech, ABB, Siemens, SRF, Titan, Axis Bank, and HPCL could be bought for trading, said analysts.

SUDEEP SHAH
HEAD - TECHNICAL & DERIVATIVE RESEARCH, SBI SECURITIES

Where is Nifty headed this week?
Nifty is below all its significant averages. 16,750 will be a crucial support zone. If breached, the index could witness further selling towards 16,600-16,550. On the upside, 17,150-17,190 will act as immediate hurdle. A surge above could witness short covering towards 17,380-17,450 levels.

What should Investors do?
Stocks from the capital goods, cement, and chemicals space to outperform with long build-up visible in select names such as UltraTech, ABB, Siemens, SRF, and Titan; while short build-up was witnessed in banking, AMCs, oil & gas, NBFC, auto, and real estate. HDFC AMC, RIL, AB Capital, Canara Bank, Eicher Motors, Jindal Steel, Godrej Properties and DLF are expected to underperform.

DHARMESH SHAH
TECHNICAL ANALYST, ICICI SECURITIES

Where is Nifty headed this week?
In the truncated week, holding the September 2022 low of 16,747 would keep the pullback option open towards the upper band of consolidation placed at 17,200. Subsequently, a decisive close above 17,200 would revive upward momentum.

What should investors do?
The index is undergoing timewise correction. Traders should refrain from creating aggressive short positions and, instead, look for accumulating quality largecaps in a staggered manner, as it is a good time to construct a portfolio from a medium-term perspective. Sectorally, BFSI, capital goods, infra, consumption, and PSU would lead the rally. We remain positive on Axis Bank, Hindustan Unilever, Siemens, UltraTech Cement, and HPCL.

SAMEET CHAVAN
CHIEF ANALYST-TECHNICAL & DERIVATIVES, ANGEL ONE

Where is Nifty headed this week?
We are not too far from the sacrosanct support zone of 16,850–16,800, which coincides with the September month swing low and 89-week EMA. On the higher side, 17,200-17,250 has been acting as a sturdy wall.

What should investors do?
Traders should avoid aggressive bets for a while. GE Shipping has confirmed a good price-volume breakout from the ‘triangle’ pattern on the daily chart. We advise buying for a trading target of Rs 654, with stop loss at Rs 608. On Friday, Cyient surged on huge volumes, we can see yet another breakout in prices, indicating further upside in the coming days. Traders can buy around Rs 990-980 for a near-term target of Rs 1,055. A strict stop loss needs to be placed at Rs 954.