Profit booking in Nifty likely in next 2-3 sessions: Swati Ananda Hotkar

“Profit booking will probably be witnessed in the coming two to three trading sessions and Nifty might take support at around 18,200 to 18,000 levels. That will act as a very strong support level and even the base for the market. If Nifty manages to give a breakout at 18,500 level, it has the potential to reach up to 19,000 to 19,400 levels,” says Swati Ananda Hotkar, AVP-Equity Technical Research, Nirmal Bang Securities.


The strength in the Indian market and with the expiry series now behind us, what are the indicators telling us about December?
Today we are just looking towards the profits booking session. Today is the weekend and yesterday we saw a very spectacular rally in Nifty as well as the Bank Nifty. No wonder, at the higher levels, we can witness some profit booking which cannot be denied as such but definitely the overall positive trend will remain positive.

Profit booking will probably be witnessed in the coming two to three trading sessions and Nifty might take support at around 18,200 to 18,000 levels. That will act as a very strong support level and even the base for the market.

Once again if Nifty manages to give a breakout at 18,500 level, it has the potential to reach up to 19,000 to 19,400 levels. If you look towards the overall longer degree, on the monthly charts it is very good. We can see these particular indices giving a breakout of a trend line which gives a very strong sign on the technical front.

Even if we look at the Bank Nifty chart, as per the retracement theory, it has just touched the feet of a 15% and it is on the verge of treading this rally towards 61.8% which is the golden ratio in the Fibonacci retracement and which comes at around 44,000 levels.

So both the indices have seen strong placements on the technical front. Though small pullbacks rally can be seen into the market on the downside, we will definitely see some uptrend remaining intact in the market.

In this market condition, where we are inching towards record high levels on Nifty, we had the Sensex as well as Nifty Bank scale those levels in yesterday’s trading session. Which are the top picks that you are advising our viewers today?
Looking towards the market, my view remains bullish as long as the Nifty and the Bank Nifty stay above the support level.

Today I am coming with two buy calls – one will be on ACC. If you look towards this particular stock, on the technical front ACC is just hovering near its 50-DMA and very well placed on the positive closing basis. As of now it is in a consolidation phase and on the verge of giving the breakout of the consolidation. Once it manages to give a breakout at 2500 levels on the closing basis, this rally is likely to be extended towards 2,560-2,600 levels. So. it has a very strong potential to touch 2,600 levels.

On the higher side so, one can take a long position in ACC, at the current market price. The stop loss can be kept at Rs 2,440 for an immediate target of Rs 2,560.

The second buy call I am initiating is in Persistent. This particular counter also looks very strong on the technical set up on the monthly chart. It has just given the breakout of a downward sloping trend line and is now trading in the pattern of the higher cups and higher bottoms which gives a signal that the stock is leading towards the 4,050-4,100 levels on the higher end. One can take a long position at current market price in Persistent with a stop loss of Rs 3,960 for an immediate target of Rs 4,050.