NIFTY ANALYSIS AND WEEKLY PICKS

NIFTY ON 02-12-2022'

The Index moved in a predictable manner as profit booking was observed at higher levels.
Opened gap down Index fell till 18650 (18639.20) which holds strong support for NIFTY.
A pull back rally from this level brough Index back near 18700 which is the decisive level for upcoming trading sessions.
Among vital Indices METAL and PSU BANK held strong while OIL&GAS also gained marginally. Rest all the indices closed in Red with AUTO being the greatest loser with a loss of 1.22%.
Index finally closed at 18696.10 defending 18700 with a loss of 0.62% making a bearish candle on daily chart.

Technical View : (Daily Chart)
NIFTY has made a Bearish candle which like last post has not been taken into consideration for analysis part because this is not representing the true picture of Market-sentiments. The reasons behind this statement remains the same as mentioned in the previous post.
NIFTY is moving above EMA 13, 21, 34 and EMA 21< EMA34<EMA13 which can be interpreted as the short and mid-term trend is positive.
RSI fell to 67.55 from 74.16 indicates that technically Index is still in strong momentum and out of overbought zone.

Support and Resistance : Daily Chart
18635-18600 will work as the first support level for NIFTY and below this 18543 will hold strong support for NIFTY.
On the upper side NIFTY will face resistance in the range of 18750-18781.
Sectoral View: WEEKLY TIME FRAME
Sector-wise IT, METAL, FMCG, MEDIA, REALTY and OIL&GAS looks strong.
There may come profit booking from current levels in PSU BANK and the positive momentum may continue in BANK,
While weakness may be seen in PHARMA and AUTO in upcoming sessions.

View for Traders:

Technically NIFTY still looks strong on daily chart and in absence of any reversal from current levels supports the previous view to remain intact.
We have already discussed the probable technical causes behind the running corrections and will not dive into that again.
Globally the cues are positive as the Job data released in US is better than the expectations and DJI has reacted positively on this data during Friday’s session. (I would request the readers to go through the articles on this event).
Also, Chinese government has loosened the COVID protocol under pressure of protests of Chinese citizens.
The FII data is also in the favour of the Bulls.
Hence, considering all these factors one may expect a gap-up opening and positive trading session on Monday 05-12-2022.
So buy on Dips may remain the strategy on Monday.
Buy NIFTY in the range of 18700-725 for Target of 18800-825. SL may be put below 18650 on closing basis.
Sellers must take their chances in the range of 18850-900 for target of 18750-700. SL may be put above 18950.
WEEKLY PICKS
1. AU SMALL FINANCE BANK
Buy in the range of 640-645
Target 687
SL 620.
Potential upside 7.34 %

2. GODREJ CONSUMER PRODUCT
Buy in the range of 869-872
Target 942
SL : 840
Potential Upside 8.40

3. TECH MAHINDRA
Buy in the range of 1133-1140
Target 1234 Target 2 1288
SL 1100
Potential Upside 8.19 and 13.60

4. NETWORK 18
Buy in the range of 70-72
Target 82
SL 66
Potential Upside 17.14%

5. MOIL
Buy in the range of 163-165
Target 178
SL 155
Potential Upside 9.20%

6. SAIL
Buy at CMP
Target 99
SL 84

7. PRESTIGE ESTATE
Buy in the range of 500-502
Target 550
SL 470
Potential Upside 10%
8. GUJARAT GAS LIMITED
Buy in the range of 500-505
Target 583
SL 475
Potential Upside: 16.6%