Nifty holding above 17000 positive for index, may head to 17500; buy these stocks for gains

Going forwards Technically Nifty holding above 17000 should be a good sign which will form a strong base, Nifty has just crossed above the resistance level of 17350, now Nifty can move towards 17500 as the first target and 17777 as the second target.

Globally markets have been very strong, most of the indices are close to their all-time high. (IMAGE: REUTERS)

By Rahul Shah

Bulls returned to the party on Dalal Street after a long pause. We saw volatility during the previous week and finally closed just above the resistance level of Nifty at 17354. Equity benchmarks had a strong close to the year and welcomed 2022 with a bang. All-round performance in the sectors IT, Metals, Financials back into flavors. Going forwards Technically Nifty holding above 17000 should be a good sign which will form a strong base, Nifty has just crossed above the resistance level of 17350, now Nifty can move towards 17500 as the first target and 17777 as the second target. Select IT Metals and consumer companies can be the flavor of the week

Globally markets have been very strong, most of the indices are close to their all-time high. We believe the strong macro can turn the sentiments of the investors back to India. In the week ahead, an important thing to watch is Auto numbers. Also, as we see a surge in Covid cases and fresh curbs by most of the state government is an important event to watch. We have been seeing a lot of surges in the cases across the globe, but one needs to understand that the recovery rate in covid post-vaccination has been very strong as good as 98%. 

India’s narrative is quite strong this time both in terms of macros and India Inc’s fundamentals. The benefits accruing through government reforms such as PLI, National Monetization Pipeline, make in India will further catalyze growth. GST collections are near record highs, the shift to digital is adding transparency and consistency, leading to the biggest structural shift towards an organized way of doing business. The balance sheet of corporate India has been repaired and asset quality issues for banks. Continued initiatives by the government, evolving fundamental prospects, pickup in demand, and favorable sectoral tailwinds should hopefully lead to the Indian markets posting healthy returns in 2022 as well. Investors should look at long-term pictures rather than listen to the noise. Happy New year and Happy Investing

Titan
Target: Rs 2670 | Stoploss: Rs 2480

Titan has given a breakout of the falling channel on the daily charts. It has formed a bullish candle on the daily scale with good volumes indicating buying interest. RSI Oscillator is also positively placed on the daily and weekly scale. Titan was among the top-performing stock on Friday Considering the current chart structure, we advise traders to buy titan with a target of 2670 with a stop loss of 2480.

JSW Steel
Target: Rs 675 | Stoploss: Rs 643

Metals have been in focus in last week, after a long pause in the sector we saw momentum back into the sector. Among them we like JSW steel stock has given consolidation breakout, stock has strong support at 642, we believe the recent price surge in the metal sector, stock can outperform among the peers. One can buy with a stop loss of 643 targets of 675.

(Rahul Shah is a Senior Vice President, Group Advisory Leader-PCG, Broking & Distribution, Motilal Oswal Financial Services. Views expressed are the author’s own. Please consult your financial advisor before investing.)

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