Replete Weekly

Nifty & Sectoral Indices Analysis for April

Hello Guys. after a long break today m starting my blog with Nifty and other Sectorial Indices analysis. From last 2 months we witness a sharp correction in major indices due to which lots of traders hurts very badly. We already suggested our clients to reshuffle their portfolios in January itself when Nifty made a high of 11000. We had converted most of the Midcap & Small Cap positions into Large-cap stocks. Overall our long-term portfolio also declines by 4% in last 2 Months. We haven’t took any new position from last two months in our portfolio, but i think now the time has come, we should start some buying but in a small portion on every decline in major indices. So today m trying to analyse which sector we need to follow most. Let’s start with Nifty first..

1- NIFTY50

As you can see Nifty already discounted so much from last couple of months. Our short-term target was 9919.75 in Nifty which almost achieved. Now 9920 is the immediate support level which we need to focus close below will lead to next level which will come around 9535. If NIFTY breaks that 9920-9900 level and start trading below that we expect 9539-9151 is the zone which need to be touch before starting it’s upward journey. Till now data suggested that market should trade like this for next 2-3 months. REMEMBER no one can predict exactly bottom so we should put a fixed amount at every decline or you can invest via SIP for your long-term wealth creation. Need to focus only on Fundamentally strong companies.

2-NIFTY BANK

In BANKNIFTY 23800 is the immediate support close below will lead to next levels. 22650-21450 should be the RETRACEMENT ZONE. The overall trend is down. 25000 is the level which needs to break to continue it’s upward journey. Sell on high should be advised here.

3-BSE IT

IT index still holding it’s important support levels and trading higher. Major IT stocks trading above their 100 days moving average and showing some strength. IT index is not looking week until it is trading above its support range of 11936.54-11316.69. Next support levels should be 11316.69-11105.16. So trade accordingly. At this stage, we are not recommending any fresh buying in any IT stock, Need to be watched very closely. If the market breaks important support levels we may see some breakdown here aswell.. So need to wait until market will give a good reason to entre.

4-NIFTY MIDCAP50

Midcap shares already gave a huge correction in past two months and mostly traders stuck in this sector. But the Dust had settled down? Now, 4850-4820 is the strong support zone, it respect this level we may see a good recovery from here but if we get a breakdown we may see a sharp slip to lower levels. So at this stage, we advise staying away from midcaps for quite sometime. Remember our main moto should be to save our capital first. if we manage to save our capital profit will come automatically. So trade with proper risk management.

4-NIFTY PSU BANK

In PSU BANKS we are seeing every day a new fraud coming out. All the major PSU BANKS hits very badly due to this. PSU BANK already facing so many problems due to NPA issue and now these Fraud coming out one by one. Results PSU BANK INDEX trading is it’s Retracement Zone. But I think DUST has not settled yet We may see some more downside in PSU BANK INDEX. So sell on every rise should be advised here. Personally, I too not trading in these Banks and not suggesting any of our clients until we get some good news from this sector.

5- BSE CONS

Finally We got a sector where we can park our money at the current stage. Consumer Durable sector showing good resistance breakout and we are seeing good buying coming in this sector from last couple of weeks. so we can keep this sector on our radar for fresh buying. M following some scripts too from this sector. Like BRITANNIA & GODREJCP. BRITANNIA charts looking good at this stage. GODREJCP is more fundamentally strong compare to BRITANNIA so for long-term prospective, i suggest we need to go with GODREJCP.

Final Advise.

As we see the market is in correction phase and expecting we may see some more down levels from here. So we should avoid new fresh buying especially in Midcaps & small caps. on the other hand, if your time horizon is long-term than buying on every dip is not a bad idea. divide your capital into equal parts and start buying on every dip or you can invest with SIP to maximise your profitability. for the long term, it’s a good time to Invest in Indian economy. We will achieve more highs in coming years. So do not panic and Keep Investing.

Views shared here only based on technicals. We should look at fundamentals as well before making any investment decisions.

You can open a Trading account with us to get all these updates and guidance on time. Have a profitable trading Guys.

DISCLAIMER: – we are not a SEBI research analyst. Views posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods.  This information should only be used by investors and traders who are aware of the risk inherent in securities trading.

About Sachin Siwal

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