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    Nifty likely to trade in 18,400-18,900 range: Analysts

    Synopsis

    The weakness on Wall Street on Friday could weigh on Asian markets on Monday. Ashok Leyland, LIC Housing Finance, Voltas, Havells, Crompton, SBI Cards, Chola Finance, and Aditya Birla Capital are some of the stocks investors can buy for short-term trades, said analysts.

    ​TradingAgencies
    Action has picked up in midcaps as the ratio of midcaps vs Nifty has reversed off the confluence of the support zone, which implies a possible catch-up move by midcap stocks.
    The Nifty is likely to consolidate in 18,400-18,900 range over the next few days after the run-up. On Friday, the market ended its eight-day winning run with the Nifty closing at 18,696. The weakness on Wall Street on Friday could weigh on Asian markets on Monday. Ashok Leyland, LIC Housing Finance, Voltas, Havells, Crompton, SBI Cards, Chola Finance, and Aditya Birla Capital are some of the stocks investors can buy for short-term trades, said analysts.

    VIKAS JAIN
    SENIOR TECHNICAL & DERIVATIVE ANALYST, RELIANCE SECURITIES

    Where is Nifty headed this week?
    India VIX is at a one-year low, sub-14 levels, indicating some consolidation at current levels for Nifty trading in a range of 18,400- 18,900 over the next few weeks. The gap levels near 18,450 and the short-term average at 18,450 would act as strong support. We expect the upside to be capped near 18,900 with key events like RBI policy and US FOMC meeting in the coming weeks.

    What should investors do?
    Increase weights and allocation to the Nifty Next 50, mid-cap, and small-cap stocks as they are yet to scale new all-time highs leading to more outperformance from current levels. Nifty Smallcap index has witnessed a breakout on weekly charts. We like Ashok Leyland, LIC Housing Finance, Voltas, Havells, Crompton, SBI Cards, Chola Finance, SAIL, and Tata Power from current levels


    MEHUL KOTHARI
    AVP - TECHNICAL RESEARCH, ANANDRATHI SHARES

    Where is Nifty headed this week?
    Technically, a move above 18,350 on a closing basis has confirmed a major range breakout with a theoretical target of around 21,000. However, due to too many uncertainties in the global space, we don’t expect the move to be one-sided. 18,350 would be an important support. On the upside, a breach of 19,000 would extend this rally towards 19,300.

    What should investors do?
    We have been focusing on individual stocks that can outperform with a bullish opinion on markets, but one considerable corrective move is needed for a better risk reward to go long. Traders are advised to remain stock specific. Buy ICICI Securities near Rs 535 for a target of Rs 575 with a stop loss of Rs 515. Buy Voltas near Rs 850 for a target of Rs 900 with a stop loss of Rs 820.

    PRITESH MEHTA
    SENIOR VICE PRESIDENT – RESEARCH, YES SECURITIES

    Where is Nifty headed this week?
    Our customised top 10 Nifty index comprising highly weighted Nifty constituents has been surging since October, trading above the 21-day EMA. A break below the same would result in a short-term reversal in the benchmark index. Churning action is expected to continue for the next few weeks, providing new leaders. As per P&F chart, the upside count of Nifty continues to be open around 19,300, yet we are likely to see range-bound action between 18,500 and 18,900 in the near term.

    What should investors do?
    Action has picked up in midcaps as the ratio of midcaps vs Nifty has reversed off the confluence of the support zone, which implies a possible catch-up move by midcap stocks. Within the pack, positive structure and outperformance are expected in AB Capital, Astral, Coforge, Dalmia Bharat, Indian Bank, and L&T FH of over 10%.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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