Dharmesh Shah of ICICI Securities Hopefully, the Nifty will touch a new alltime high in the coming quarter. They also believe that the Nifty can move towards 25,500 in the coming weeks with a strong improvement in the market of the market. Therefore, shopping on the decline will be the right strategy. There is strong support at 24,400 for Nifty.
Due to increased geopolitical tension, the defense sector has seen a strong rise in the last few months. In such a situation, the possibility of mild profits cannot be ruled out after a rapid bounce. Dharmesh Shah is a technical head in ICICI Securities.
Do you hope that the Nifty will touch a new record high in the June series?
To this, Dharmesh Shah said that if we look at the previous figures, the corresponding corrections on the basis of prices in the structural rapid market since 2002 have generally been around 18 per cent (except 2004 and 2006). At the same time, time wise correction has been seen running for 8-9 months. According to the previous data, in the seven months, the Nifty Price and Time have come close to the completion of correction with 17 per cent correction.
In addition, purchases near the 52-Veek EMA have made the risk-reward position adaptable with an average return of 23 per cent in the next 12 months. During this period, there has been an average decline of 6 per cent below the 52-Veek EMA. Even in the current situation, the purchase is seen returning from around 6 per cent below 52-Veek EMA in the index. Keeping these things in mind, we hope that the Nifty will touch a new alltime high in the upcoming quarter.
Do you believe that the existing consolidation will be completed with a strong breakout at the top and in the coming week, the bank will touch a new height?
A slight decline after rallies is a common phenomenon in the bull market. Currently, the recent rise in banknifty is more than (14 per cent) than the previous month (9 per cent). In addition, the decline is decreasing as the recent decline is 4.6 per cent while March-25 saw a decline of 5.6 per cent. Bank Nifty is undergoing a round of healthy consolidation. This index is creating a strong base for moving towards 57,000 and setting new highs in the coming months.
What should be your trading strategy for Nifty in the coming week?
The Nifty has seen a good breakout from the three-week Consolidation Range 24,500-23,200. Due to this, there was increasing boom. Improvement in market breadth indicates improvement in widespread market participation. This strengthens the estimate of the Nifty to move towards 25,500 in the weeks. Therefore, shopping on the fall would be the right strategy. Support is visible at 24,400 for Nifty.
Do you think the Nifty Auto Index will continue to rise due to support from technical indicators?
The Nifty Auto Index has done strong strong recovery. The fall of the last 13 weeks has been compensated in just six weeks. This is a sign of structural change. In addition, the recent changes on the issue of tariffs are even more good for the auto index. Further, we may see a boom in passenger vehicle (PV) segment, auto analysis and tire stock.
Next week these 5 stocks will make a blast in the market, shares may be earned strong after opening market
Is the Nifty Defense Index overbott, or do you think there is a possibility of further faster in it?
In the last few months, there has been a sharp jump in defense. Defense shares have gained momentum due to increase in existing geopolitical tension. After the rapid bounce so far, the possibility of some profit booking in this sector cannot be ruled out. If any correction comes in these shares, it will be healthy. This decline will have a good chance of shopping from a long to medium -term perspective.
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