Connect with us

Hi, what are you looking for?

Share Market

Nifty out of harm’s way but faces strong resistance at 16700-16800; bet on these sectors | JM Fin INTERVIEW

Financial Express - Business News, Stock Market News

Nifty, bank NiftyNifty could face a strong resistance near all-time highs.
(Image: Reuters)

The Nifty 50 has rebounded smartly from the lows of the previous week and is now scaling fresh all-time highs. However, the Relative Strength Index (RSI) has still not improved for the index, said Rahul Sharma, Director & Head – Research, JM Financial in an interview with Kshitij Bhargava of Financial Express Online. Further, he adds that Nifty could face a strong resistance near all-time highs and believes that the FMCG space remains the best bet for investors, given the elevated levels of Nifty. The benchmark indices had corrected from the highs last week amid a global sell-off. 

Do you still see a correction taking Nifty closer to 15,900?

The recent bounce-back in the global markets have taken Nifty away from harm’s way as support of 16,400 remained intact on a closing basis. However, RSI has still not improved for Nifty as compared to the August 18 high and we may see supply coming again at higher levels. The good thing about yesterday’s move was an improvement in market breadth which has helped Nifty record a close above 16,600 (a new ATH closing). The confirmation of correction will come if we break 16,400 decisively until then it’s best to stick to momentum counters for trading and investors are advised to take some profits off the table as we inch higher. 

If last week’s negative trend has been reversed what level could the Nifty scale in the near term? 

We are approaching monthly expiry and monthly closing which should set the trend for a lot of sectors that have started to witness rotation. Since we are in uncharted territory it’s best to take one move at a time and keep stop-losses on longs. Nifty may attempt to test the 16,700-16,800 zone on the upside which remains a strong resistance area as per options data. 

What levels should investors watch on the downside? 

Below 16,400 the bearish move would get activated once again. 

What sectors seem attractive at this juncture?

FMCG looks the best bet as of now given the elevated levels in Nifty whereas IT may see good trading momentum continue. We are looking for signs of follow-up buying while identifying sectors. 

Midcap and smallcap stocks jumped today, is the trend reversing for them and could we see them surge higher or is it too early to say? 

It’s a bit early I would say since they are due for a time correction. It is best to stick to quality names in Mid-caps and Small-caps and avoid pre-empting bounce back trades here.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like


Cybercriminals Adopt the Blockchain to Broadcast confidential Messages A group of analysts from SophosLabs represents that programmers working the crypto-jacking malware, Glupteba, have been...


PUBG unban in India soon as PUBG Corp. Will The Government Of India Unban PUBG? PUBG Mobile was Ban in India, PUBG organization has...


A standard method to execute Bitcoin could be powerless against double-spending, the new examination has found. Blockchain sleuths at ZenGo, a wallet startup, have...

BlockChain News

HDD mining, also known as “storage mining”, is a process of obtaining cryptocurrency based on hard disk memory. Compared with traditional POW mining, hard...