Stocks

investment strategy: Nifty falls from near 18K: Investors can book partial profit and re-enter at 17,400: Vaishali Parekh

“Investors can book partial profits in their portfolio and wait for the next turnaround with Nifty having the near-term support zone near 17300-17400 levels,” says Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher Pvt. Ltd.

In an interview with ETMarkets, Parekh, said: “When it comes to trading, most of the activity recently is witnessed in sectors like Realty, Cement, PSU Banks and select Private Banks were in the limelight where decent volume participation was witnessed,” Edited excerpts:

What a week for Indian markets – Sensex rose above 60,000 while the Nifty inched closer towards 18000, but pared gains towards the close of the week. What led to the price action?
Most indicators have been hovering in the highly oversold zone and stocks were also trading at attractive rates which the market players took the opportunity that led to a decent rise.

Foreign institutional investors (FIIs) are switching from sell mode to buy mode adding more fuel to the price action with sectors like Auto, FMCG, Banking stocks, Realty and many others performing well bring the indices almost to their peak levels.

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India VIX increased by over 3% in the week gone by as we approach 18K. Any key levels that markets should track in the coming week? Will Nifty50 be able to reclaim 18000-18200 in the August series expiry week?
The Nifty50 has given a decent rise in the recent past as it is now nearing closer to 18,000 landmark which is also a psychological resistance barrier that everyone would be focussed on.

Some correction is happening at this zone that would not be a surprise and the near-term support would be around the 17300-17400 zone.

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A breather and some dip would be healthy for the market as that would help market players to again reinvest with conviction.

If there are dips in the coming week – should investors do? Buy the dip or wait on the sidelines as there could be further selling pressure?
The Nifty50 can witness some exhaustion near the 18000 level and see some slides in the coming days.

Investors can book partial profits in their portfolio and wait for the next turnaround with Nifty having the near-term support zone near 17300-17400 levels.

The crucial strong support base is near the 17000 zone which is also where the significant 200-DMA lies.

Where is smart money moving when it comes to trading? Which stocks are traders’ favourite in the week gone by?
When it comes to trading, most of the activity recently is witnessed in sectors like Realty, Cements, PSU Banks and select Private Banks were in the limelight where decent volume participation was witnessed.

Metro Brands, rose by about 40% in a week in S&P BSE 500 index. What led to the price action, and what does the technical suggest? What should investors do?
These stocks have outperformed in the recent past and technically are in the overbought zone with the trend remaining intact. Investors can book partial profits and if some correction is witnessed which would be better for the stocks, they can wait for the next trend reversal for further upmove.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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