By Rahul Shah
Nifty saw a sell-off last week and was not able to move out of range 17650 on Nifty levels. Equity benchmarks logged their second-worst week in almost 10 months since the week ended February 26, 2021, dragged by broad based losses across sectors barring information technology. Sensex tanked by 1775 points or 3% to close at 57012 and Nifty nosedived by 526 points (3%) against the previous week close. As the selloff in the market intensified on weak global cues, tightening monetary policy, USDINR spiked to a 20-month high to above 76 and continued FIIs selling (FIIs net sellers over Rs 10,000 crore).
Technical Outlook:
Nifty index opened flattish but failed to surpass 17300 zones and fell sharply to break its psychological 17000 marks. Bears completely overruled the market and selling pressure was visible at all key levels. It formed a strong Bearish candle on daily scale and has been forming lower lows from the last five sessions. It formed a Bearish candle on weekly frame but respected its previous week’s low levels. Now till it remains below 17100 zones, weakness could be seen towards 16800 then 16500 zones whereas major hurdle exists at 17200 and 17350 zones
Zensar TechTarget: Rs 510 | Stop-loss: Rs 458
IT stocks witnessed sharp rally against the market and loos like the trend might continue to be on upside, Zensar has given a consolidation break out after touching low of 416 and bouncing back smartly of the range of 470 which was the key resistance . We believe stock can go to 510, one can buy with a stoploss of 458 for next week.
IEXTarget: Rs 285 | Stoploss: Rs 242
The weekly chart of iex indicates that the stock has been trading in strong uptrend and has maintained its momentum within the rising parabolic channel. It has recently found support at 238 which is the lower end and looks like stock can perform better in coming week. Volumes has been high in the stock, one should buy IEX with a stoploss of 242 and target of 285.
(Rahul Shah, Senior Vice President, Group Advisory Leader-PCG, Broking & Distribution, Motilal Oswal Financial Servcies. Views expressed are the author’s own. Please consult your financial advisor before investing.)