Brokerage expects Nifty 50 to hover around 14200-14900 range in April, puts buy call for Nifty Bank
The benchmark index Nifty 50 is set to hover around 14200-14900 level in April, a report released by Anand Rathi Share and Stock Brokers Limited mentioned
The benchmark index Nifty 50 is set to hover around 14200-14900 level in April, a report released by Anand Rathi Share and Stock Brokers Limited mentioned.
In its bazaar bulletin for April, the brokerage firm pointed out Nifty had to breach the 14900-level to reach to the new life-time high. It said, "It is evident that index has a supply zone at 14900 mark. So going ahead, unless 14900 is not taken out on a decisive manner one cannot expect new life highs for the market."
Nifty 50 is currently trading at 14,698.95 up 61.15 points or 0.42 per cent. It had reached lifetime and 52-week high of 15431- level on February 16, 2021.
The brokerage said, "The price action indicates that we might soon take away that resistance level. Moreover, 14200-mark is a very sturdy support because of the recent lows and also the placement of rising trend line as displayed on the chart."
Nifty, in FY21, has risen near 70 per cent, giving bumper returns to the market. The data released today by the central government of FPI inflows points out the market has received an investment of over Rs 2.74 lk cr in the financial year 2020-21.
Anand Rathi is of the opinion that a breach of 14200 could be disastrous for the markets but that too will not change the larger picture unless 13600 is not taken on the downside.
Meanwhile, the other important index on Nifty — Bank Nifty. The brokerage firm is very optimistic with this index and expects very strong support for the index of 32600-level, which acted as a DEMAND zone for the index as per the ‘Change of Parity’ theory.
The brokerage firm further opines that unless this support is broken, chances of Nifty Bank index outperforming is quite high, as it also banks on the RBI Monetary Policy, which is scheduled on April 7, 2021, which perhaps may give cushion to the Nifty Bank.
"As a result, we have initiated a Buy recommendation in BANKNIFTY futures near 33600 mark for an upside target of 36800 with a stop loss of 3200,"recommends the brokerage firm.
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