So, after six straight declining sessions and a strict consecutive week of declines that we saw in the market, hopefully, today will be a good Monday. We started off above 24,500, but right now, we are slightly below that level, moving in a very range-bound territory. So, what do you see as the immediate support levels?
Rajesh Bhosale: Yes, definitely, Nifty is attempting to bounce back today. But last week, we saw Nifty break below the key support level of 24,500, which has been acting as a strong base since May. So, crossing back above 24,500 will be crucial because as long as we trade below it, the market may remain tentative. Last Monday also started strong but fizzled out at higher levels. So reclaiming 24,500 is important.
That said, since Thursday, we have seen some buying around 24,300, and the hourly charts are showing a double bottom formation. For now, we expect Nifty to trade in a range of 24,300 to 24,500 during this truncated week. Once we see a breakout from this range, we can expect some momentum. The ideal approach would be to focus on stock-specific action because the market is in an oversold zone, so some counters may show outperformance.In this market, what should one do? Do you see opportunities? Also, particularly on PSU banks, is there any pick? After SBI’s numbers, the stock is up more than 2% today.
Rajesh Bhosale: Overall, PSU banks are showing strength, and all the major counters like State Bank, Canara Bank, and Bank of Baroda are performing well. In fact, one of my buy calls today is in the PSU banking space. The stock I like is Indian Bank. Compared to Bank Nifty, Nifty, or broader markets, Indian Bank is showing strong performance and trading in uncharted territory. On the daily chart, we see a consolidation range breakout, indicating a resumption of the primary uptrend. So, Indian Bank can be bought around the current price of 662 with a stop loss at 644. We expect the stock to move towards 690 in the coming days.
My second buy call is on Tech Mahindra in the IT space. This stock has been under pressure recently, but last week it formed a bullish engulfing pattern on the weekly chart, at the weekly 89 EMA support and a key 50% retracement level. Considering this strong pattern formation at key support, we expect Tech Mahindra to perform well. With a stop loss of 1430, Tech Mahindra can be bought, targeting 1580 in the near term.
