By Ravi Singh
Nifty October futures are currently trading at a 75-point premium. We have seen a decent bounce of around 500 points after making a low of around 24,750 zone. We have seen a further downfall in the FII long ratio which is now at 35%. Furthermore, we have seen a sharp sell-off by FII’s in the cash segment amounting to Rs 62,000 crore in the first fortnight of October month. The Nifty is hovering in a range of 24,800-25,250 zone, so a breakout in either direction is needed for a decisive move. So coming to the view, we can expect positivity only if we see a closing above 25,350 levels on the spot and till then one should avoid making fresh longs. On the downside, one can initiate fresh shorts if it slips below 25,000 levels on the spot with 24,800 acting as immediate support.
View on Bank Nifty
Bank Nifty moved in line with the broader market, climbing over 1,000 points. The index is now approaching its immediate resistance at the 52,000 level, so it’s advisable to remain cautious at this stage. Fresh long positions should be considered only if the index sustains above 52,000 on the spot level. If Bank Nifty manages to hold above this zone, further upside towards the 52,500 level is possible. This resistance level may pose a challenge, so monitoring price action closely around 52,000 will be key to assessing the next move for the banking index.
FMCG, Realty, and IT sectors are projected to outperform the broader index over the next week. These sectors show strong momentum and resilience, positioning them well to deliver solid gains relative to the market, especially amid current market dynamics and sector-specific tailwinds.
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(Disclaimer: Ravi Singh is the Senior Vice President of Retail Research at Religare Broking. Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions.
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