Tech View: A break above 24,500 could take Nifty to 25,000
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DHARMESH SHAH, HEAD OF TECHNICALS, ICICI SECURITIES Where is Nifty headed this week? We expect Nifty to continue trade with a positive bias and gradually head towards 24,700 by July end. Higher peaks and troughs supported by market breadth signifies inherent strength (currently 86% of stocks are trading above 50-day EMAs), and the global setup continues to remain on strong footing and, barring minor retracements, does not flag higher volatility. What should investors do? Past five week’s sharp up-move of 15% has hauled the weekly stochastic oscillator in overbought territory (at 95). Thus, the possibility of a temporary breather at higher levels cannot be ruled out ahead of the budget and the June quarter earnings season. Hence, any dip should not be construed as negative. Instead, it will be a buying opportunity as key support is at 23,700. Sectorally, BFSI, IT, oil & gas, capital goods, infra, pharma, and PSU are expected to do well...