In the current market scenario, there is a palpable excitement surrounding HDFC Bank as it nears its all-time high of Rs 1,794 per share. Anuj Singhal from CNBC-Awaaz highlighted that there has been significant under-ownership in HDFC Bank over the past year, with Foreign Institutional Investors (FIIs) and mutual funds frequently offloading their shares. The big question now looms: Will HDFC Bank break through the Rs 2,000 mark? If so, it could lead to substantial outperformance in the Nifty Bank index.
Market Trends and Predictions
According to Singhal, the targets for the Nifty and Bank Nifty are set at 27,272 and 56,000, respectively. The overall market is experiencing a strong uptrend, although individual portfolios may seem stagnant. Attention is increasingly shifting from midcap and smallcap stocks to large-cap stocks, indicating that investors should focus their efforts in this area for the time being, as there is potential for significant gains.
Expiry Day Insights
On this expiry day, Singhal predicts that Nifty could open above all-time highs. Based on GIFT Nifty data, it is anticipated to start above 26,033. The shorts from Tuesday’s trading session are expected to be covered today. Historically, Nifty tends to close near its peak on expiry days—if it maintains levels above 26,050, targets of 26,150-26,200 could be within reach. Recently, there has been a notable surge in the market, particularly in the last hour of trading.
The Banking Sector and IT Focus
While banks are currently leading the Nifty index, it is crucial to keep an eye on the IT sector today, as many major IT stocks are hovering near significant support levels. The strength in the dollar index is seen as a positive indicator for IT companies. Additionally, the metals sector has shown momentum over the past two days, which could continue today. This month, Nifty is up by 3%, midcap stocks are up 2%, but smallcaps have remained largely flat. Singhal advises booking profits in midcap and smallcap segments.
Strategy for Nifty
For today’s strategy concerning Nifty, Singhal notes that the initial resistance levels are between 26,033 and 26,066, which is the call writers’ zone. Should Nifty breach 26,066, a further resistance can be expected at 26,128. If this level is surpassed, an immediate surge towards 26,200-26,250 is possible.
It is advisable to remain in long positions and adjust the stop-loss to 25,850. Focus on trades for the October series while implementing strict stop-loss measures at 25,850. This entails a risk of 200 points but offers a potential reward of 1,000 points for new positions. It is vital to avoid contemplating short positions in the current market environment. Over the past three months, discussions around shorting have not arisen, and with a target set at 27,272, it is important not to undermine this outlook.
Strategy for Nifty Bank
Singhal highlights that the audience at Awaaz currently favors long positions in Nifty Bank from the 51,400 mark. This bullish stance was adopted when the general sentiment was short, resulting in a gain of approximately 3,000 points for Nifty Bank. He believes there are still 2,000 points left in the ongoing rally. HDFC Bank is positioned for a significant breakout; should it approach the 2,000 mark, Nifty Bank could follow suit to reach 56,000. It is recommended to maintain a stop-loss at 53,750 for Nifty Bank, with a buying zone between 53,900 and 54,100, maintaining the same stop-loss level. Notably, the next significant levels to watch are 54,500 and 55,000.
Disclaimer
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