Pre-trade comments by Prashanth Tapse, Senior VP (Research), Mehta Equities
It was a rather subdued week on Dalal Street, with limited participation in the Nifty and a conspicuous absence due to fears of missing out, with the pursuit of strength proving ineffective. Investor caution is growing as debate continues over the RBI's unstimulative monetary policy and the Federal Reserve's inflation target. Despite the market downturn, the S&P 500 index's historic closing price above his 5,000 offers some optimism. From a technical point of view, the intraday support for Nifty is 21557, while the hurdle is his all-time high at 22127. Support for Bank Nifty is 44429 and immediate hurdle is 46311. Nifty options data suggests a trading range of 21500-22500. Key factors include his January CPI in the US, plus his CPI and IIP figures in India. All eyes are on corporate earnings and third-quarter financial results, and the outlook for Nifty's rise is bright as it aims to hit a new all-time high. Weakness among buyers below 21557 could attract bears. The proposed trades include buying Nifty at CMP targeting 21907/22011 and buying Bank Nifty at CMP targeting 46181/46893. On this day's chart, BANK OF BARODA, BHARAT FORGE, SIEMENS, and ADANI ENTERPRISES are in favor due to intraday weakness. The recommended stock to buy is PNB (CMP 124) with a stop high of 116.75 and a target of 129/135, following a monthly strategy based on higher high/low rationales.