NIFTY CONTINUED TO FACE HURDLE @20060
BANK NIFTY BULLISH AHEAD MAY TEST 45000

Dated: 25/11/2023

Neither bulls nor bears none got any chance to rule the Dalaal Street last week as Nifty faced hard times to cross its initial resistance levels. Last week Nifty remained near 19800 neither bulls nor bears won as they faced hard to win the fight. Nifty merely gained 63 points for the week while Sensex gained 176 points i.e. 0.32% & 0.27% respectively.

Another week coming ahead as we move into the last week of the November series which saw long roll over hurdles still remained within the range of 19992-20060. Though if Nifty manages to surpass 19875 it has higher probability Nifty may even surpass 19992-20060 range.

Nifty last week made high of 19875 while gave a close @19794.70 up merely 63 points for the week as compared to its previous weeks closing of 19731.80. Moreover in the coming week if Nifty manages to give a close above 19875 then Nifty may have the potential to even surpass its immediate hurdle which lies @19992-20060. However, crucial support lies within the range of 19670-19703. This narrow range in Nifty makes its more vulnerable for a bigger move if any side is breached decisively. If crucial hurdle of 19992-20060 is crossed Nifty has potential to even test 20200-20450 in coming December series while if crucial supports got breached we may test 19329-19404 on the lower levels. So far November series have support bulls on Dalaal Street.

Sensex managed to make a high of 66235.24 & ended with a close @65970 up nearly 176 points as compared to its previous weekly close @65794.73. In the coming week Sensex may try to test its immediate hurdle within the range of 66600-66736 & a decisive breakout above these could also be witnessed. Any move above these we could possibly get to see 67900 kinds of levels. Meanwhile the crucial support lies within the range of 65547-65665. Any breach below these supports we could get to see 64638-65158 kind of levels. However the broader trend still remains positive into the hands of Bulls.

Bank Nifty could be the hero of the coming week as lately last week Bank Nifty has been the culprit but since the HDFC Bank in heavy weights is out on the road for better performance & pull back from the support levels can be seen in this we have possibility of Bank Nifty outperforming the broader markets in the coming week. As we move ahead into the new week Bank nifty has its crucial support lies within the range of 43000-43390 while the expected possible target could be 44400-45000 for the coming week outperforming major indices. Bank Nifty here has the potential to remain bullish with buy on every dip as an opportunity.

Nifty Financial Services too has found its supports with the desired range of 19445-19492 & this has the possibility of hitting 20000 in the coming week. Every dip here remains a buying opportunity as heavy weights are now going to outperform the broader markets.

Nifty IT Sector the most beaten up industry lately due to Russia-Ukrain & Israel-Palestine war remains strong & showing strength & is expected to bottom out in November series itself  but the last week could remain weak here & 31400 here could be tested & used to go long as 33700 remains as immediate target in coming 2-3 Weeks.

Meanwhile back in September 2016 the Bharat’s official every month SIP was Rs. 3,700 cr. which has grown exponentially to Approximately Rs. 16,000 cr. every month & all these money is directly been invested into the markets which also reflects we are no longer solely depended on FII’s for our markets to grow.

Brief Levels of Nifty / Sensex/ Bank Nifty / Nifty Financials / Nifty IT:

Nifty CMP:  19794.70
Nifty Crucial Resistance: 19992-20060 / 20200-20450 (As the case may be)
Nifty Crucial Supports: 19670-19703

SENSEX CMP: 65970
Sensex Crucial Resistance: 66600-66736 / 67900 (As the case may be)
Sensex Crucial Supports: 65547-65665 / 64638-65158 (As the case may be)

Bank Nifty CMP:  43769.10
Bank Nifty Crucial Resistance: 44421-45000
Bank Nifty Crucial Supports: 43000-43390

Nifty Financial CMP: 19648.20
Nifty Financial Crucial Resistance: 20000
Nifty Financial Crucial Supports: 19257-19458

Nifty IT CMP: 32055.15
Nifty IT Estimated Target: 33700
Nifty IT Crucial Supports: 31400

Stock on Radar:

Large Caps:

• Ambuja Cements (414): This large cap counter has been sideways since very long due to adani melodrama. Some good days could be seen in this counter soon in coming weeks ahead. One can accumulate @CMP 414 with strict SL placed @390 for an estimated possible target remains @486 in short term
• Hindustan Zinc (CMP 301): This large cap metal counter looks on a marginal support here @CMP 301 with strict SL placed @287 one can expect a target of 360 on the cards.
• SBI (CMP 560): This counter has been on the sideline since May 2023. Looks on attractive level with strict small SL @540 one can accumulate here @CMP 560 for an estimated possible target remains @610.
• IGL (CMP 392): This counter looks attractive with small SL @370. One can accumulated here @CMP 392 for an estimated possible target remains @460.

Mid- Caps:

• FSL (CMP 170 ): This mid-cap IT stock is on the verge of a meaningful breakout in its ongoing rally. Any move above 176 could an opportunity to buy with an estimated possible target of Rs. 200+ meanwhile keep strict SL placed @145.
• Happiest Minds (CMP 832): Another mid-cap counter in IT sector is Happiest Minds Technologies. Looks attractive add here @CMP 832 & can be added more on dips towards 811 with strict SL placed @715 with a estimated possible target remains @1020-1136 within next 4 months period.
• Precision Campshafts (CMP 244): The counter looks attractive on CMP 244 with strict SL placed @221 for an estimated possible target of 280 in short span of time.

Small / Penny Stock Lovers Counter

• Accel India (CMP 20.60): This micro-cap counter looks like have some steam left for its last laugh but obviously with strict SL placed @14.50 one can look for a target price of 40-50.
• Lords Chloro Alkali (CMP 146): This small cap counter looks attractive with small SL of just 21 points & possible reward of 90-130 points. Once can accumulated here @CMP 146 with strict SL placed @135 for an estimated possible target remains @235-265 within next 4 months time frame.
• Balaxi Pharmaceuticals (CMP 434): This counter looks like has generated buy signal on Weekly charts @CMP 434 one can keep strict SL placed @399 with a estimated possible target remains @502-616 within next 2-3 months time frame.

About the Author:

Mr. Vishal Gupta a SEBI Registered Research Analyst is the founder of “VG STOCK RESEARCH”, founder of “THE ANALYSIS ROOM”, a writer & an advisor having rich experience in Indian Equity Markets who has spent years comprehending an industry wide shift and risk management with more than 9+ years exploring in depth analysis of the Equity & Derivatives with accuracy of 90% and above.

He has also been into teaching Fundamental Analysis for quite some time giving investors/traders comprehensive knowledge & skills of Indian Equity Markets.

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