Sudeep Shah, the Deputy Vice President and Head of Technical and Derivative Research at SBI Securities, shares his views on the Nifty, Bank Nifty, and market trends.
Nifty’s Short-Term Outlook
Sudeep Shah believes that the Nifty, after its sharp rise over the last few weeks, is likely to enter a phase of consolidation. This means the market may not see big movements in the next couple of weeks as it digests recent gains. The Nifty index has recently surged by over 2,600 points, but now momentum seems to be slowing down. The market might face some resistance around the 24,350-24,380 levels, and if the index manages to break above these levels, it could rise further. However, if it drops below 23,750, the Nifty might test the next support level at 23,350.
FIIs Positioning
Foreign Institutional Investors (FIIs) have been buying Indian stocks in recent sessions, showing confidence in India’s economic growth. However, in the futures market, they are taking a more cautious approach, meaning they are optimistic but still keeping some protections in place.
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Top Stock Picks for the Week
- Mphasis: The stock of Mphasis has shown strong performance, especially in the IT sector, which has outperformed the overall market. It has crossed key moving averages and looks set to continue its upward movement, with a target price of Rs 2,800.
- Grasim Industries: Grasim has been in an uptrend and looks likely to continue rising. The stock is expected to test the level of Rs 2,900 in the short term. It’s recommended to buy in the range of Rs 2,740-2,720 with a stop-loss of Rs 2,640.
Views on UltraTech Cement and ICICI Bank
- UltraTech Cement: The stock is in a strong uptrend, trading above key moving averages, and is expected to keep rising in the short term.
- ICICI Bank: After a brief pullback, ICICI Bank is showing signs of recovery. A move above Rs 1,420 could push the stock back to higher levels.
Nifty FMCG Index Outlook
Sudeep Shah doesn’t expect a big breakout in the Nifty FMCG index in May. The index is likely to stay within a range of 55,500 to 58,100, with no major moves expected unless it breaks out of this range.
Bank Nifty’s Near-Term Outlook
The Bank Nifty has been strong and is unlikely to experience a major correction in the near term. The index has recently reached new highs but is now in a phase of consolidation. It has solid support around 54,100 and could continue upward if it breaks through resistance at 55,500-55,600. If it moves past this resistance, it could test levels of 56,300 and 57,000 soon.
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In conclusion, while the market may face some consolidation, Sudeep Shah remains positive about stocks like Mphasis and Grasim Industries for the coming week.
