Majority of Nifty 500 shares waiting for earnings before following Nifty’s rally; use ‘buy on dips’ approach
时间:2024-06-26 16:10:58 阅读(143)
By Anand James
If the buzz in the F&O space last is it be believed, then markets are gearing up for more upsides. 72% of the stocks on the F&O segment ended the last week with a positive bias, with 46% witnessing long build up and 26% short covering, while only 20% witnessed short build up. Among these stocks, long build up was seen the highest in healthcare, capital goods and realty. Incidentally, Realty index registered the most gains last week with a 4.3% return. IT and metals had the least number of stocks with long build up, but majority of them are undergoing short covering, and hence they do have good room for more upsides.
Last week, we had raised the upside objective for Nifty from 17,470 to 17,800, which appeared too near a target, when Nifty started steaming in, until it was timed out, buy the truncated week. While Thursday’s close was encouraging for Nifty, the participation from broader markets is still lagging. In fact, though Nifty cleared the 200 DMA, as well as the 50 DMA, 44% of Nifty 50 stocks is still below 200DMA. Only about 35% of NSE 500 stocks have crossed their respective 60 DMA, suggesting that stocks are waiting for earnings to kick in before following Nifty. This lag may take some bite off Nifty’s surge, as traders are regrouping to possibly take a stock specific approach as earnings will command more attention in the next 30 days or so.
We will hence open the week with less enthusiasm as the last, and while hoping that the dips are held inside the 17,470-370 band, in order to retain the 17,800 trajectory. Oscillators did witness signs of peaking in the intraday horizons on Thursday, which in fact led to the pause, but the 3 day RSI continues to hold above breakout level, and favors an achievement of at least 17,700, the two standard deviation mark, before any significant pull back. Until then, a “buy on dips” approach is favored.
(By Anand James, Chief Market Strategist at Geojit Financial Services. Views expressed are author’s own. Please consult your financial advisor before investing.)
猜你喜欢
- 2023 saw accelerated “formalisation;” MSMEs biggest beneficiaries
- 10 ways to keep yourself healthy in 2024
- Nifty needs to hold 17777 to surge to 17900-1810; Buy these two stocks for gains
- Nifty to fall below 17800 or pullback rally to push index higher- 8 things to know before market opening bell
- Nifty to extend ongoing rally towards 18000 going ahead, use dips for buying; RIL, SBI top making bets
- Chhath Puja 2023 celebrated with great enthusiasm, fervor across India – In pics
- Nifty sentiment at ‘buy on dips’, Cement, Pharma and IT looking positive; Bank Nifty support near 44000
- Nifty to extend gains or fall under 18,200- Check US stocks, Asian markets, FII activity, SGX Nifty, more
- Closing Bell- Indian Indices closed in red, Nifty settled below 19,400, Sensex below 64,850, Realty and Auto shines