Indian equity benchmarks continued to trade in a narrow range as the Nifty struggled to sustain momentum near the 26,000 mark, weighed down by weakness in the IT space and bouts of profit booking. Market participants are increasingly focused on key technical levels as the index attempts to consolidate after recent gains.
Speaking to ET Now, Rajesh Bhosale from Angel One said the Nifty has been finding it difficult to move past the psychological 26,000 level, leading to some profit booking in the benchmark index. However, he pointed out that the broader technical setup remains constructive.
“If we talk about markets, last few sessions Nifty was struggling around the psychological 26,000 mark and due to weakness in IT space we are seeing some profit booking in this benchmark index. But if we consider the weekly charts of Nifty, last week there was a very strong formation that happened and because of that we remained on the market where a dip should be considered as a buying opportunity. If we see, there is a bullish gap left around 25,700 that coincides with key moving averages. So, 25,700 is what we are expecting to act as a support, but on the higher side 26,000 is the immediate resistance. So, 25,700 to 26,000 is the key range for now and one should play this range. But having said that, stock specific opportunities are there and one should focus on there,” Bhosale said.
With the frontline index moving in a tight band, attention is shifting to sectoral and stock-specific opportunities. Bhosale highlighted strength in the financial space, noting broad-based buying interest.
“So, if we see, financial space is doing very good and broad-based buying is witnessed there. One of the counters from that space I am liking is Bajaj Finance. If we see, despite market weakness this counter is up around 2%. If we see the chart structure, it has been holding above
Read More