Nifty to trade in 16400 & 16800 range this week; US Fed meet in focus: Vijay Dhanotiya of CapitalVia Global Research

Vijay Dhanotiya, Lead of Technical Research, CapitalVia Global Research Limited said that he expects the Nifty to trade in the range of 16400 & 16800. If it breaches the above level of 16800, we can expect the market to rally to the level of 17000.

In an interview with Zeebiz's Kshitij Anand, Dhanotiya feels that the US Fed meeting this week will be a very important one as it would give a direction globally whether there will be an increase in interest rates or not. Edited excerpts:

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Q) Sensex, and Nifty50 closed with gains of over 2%. What led to the price action?

A) Sensex and Nifty 50 closed with gains as the geopolitical tensions decrease after Ukraine has pulled back from joining NATO which led to positive sentiments amongst the traders and hence, we saw a swift recovery in the market.

Q) What is your view on Nifty and Nifty Bank for a holiday-shortened week?

A) We have seen a very quick recovery in Nifty and Nifty Bank, and we expect that it will be volatile for the next week in a small range.

We expect Nifty to trade in the range of 16400 & 16800. If it breaches the above level of 16800, we can expect the market to rally to the level of 17000.

For Bank Nifty 34000 is an important support level and we expect the market to trade in a range of 34000 and 35500.

Q) Sectorally telecom, IT, realty rose over 2% each while power stocks saw mild selling pressure. What led to the price action, and will the momentum continue?

A) Telecom, IT, and Realty stocks had seen a big correction in the recent past and in the recovery, we have seen that these sectors were able to outperform in the market and this rally can continue with the positive momentum in the market.

Q) We have seen some stability in the market in the week gone by – time to buy or investors should wait it out if someone has a time horizon of 1-3 years?

A) We have seen stability in the market, and we can expect the market to trade positively from here, but a small correction can be expected with the war still going on.

Inflation is also one of the reasons for worry which can led to a correction in the market, but with a horizon of 1-3 years investors can start accumulating fundamentally strong stocks.

Q) The big Fed meeting is also due in the coming week – what are your expectations and how should investors prepare for the event?

A) The inflation worries are high globally and with already high inflation the geopolitical tensions have further increased the worry amongst the investors.

The US Fed meeting this week will be a very important one as it would give a direction globally whether there will be an increase in interest rates or not.

We can expect an increase in the interest which can affect the Banks and NBFCs positively.

Q) The recent strike on telegram channels from SEBI is a welcome step. Any advise you would like to give to traders if they base their trading strategy on social media tips?

A) The move on telegram by SEBI is a very welcome move as there were a lot of scams going on social media.

We would advise traders to rely on the SEBI registered financial advisors for any query related to financial markets and not rely on random social media tips.

Q) Please suggest 3-5 stocks for teh next 3-4 weeks which are looking attractive post recent drop?

A) Asian Paint, TCS, and HDFC Banks have corrected about 20 % and more from their high which provides investors with lucrative investment opportunities.

These are fundamentally strong stocks that can provide good returns in the market with the recovery. 

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)