18K likely this week, may trigger some profit booking: Analysts

SRIRAM VELAYUDHAN
VICE PRESIDENT-ALTERNATIVE RESEARCH, IIFL SECURITIES

Will the Nifty cruise past 18,000 or take a breather from here?
With the underlying momentum being pretty strong, the milestone 18,000 mark is well within reach. However, on the technical front, markets have entered an extremely overbought zone corroborated by a high Relative Strength Index reading of 80 coupled with a negative divergence with price and weak market breadth pointing to indecision at higher levels. Apart from bouts of profit booking, we will rule out reversals or deep correction. Support levels for the index are placed at 17,700 and 17,600. We expect financials, realty, auto and energy to outperform. After achieving a range breakout earlier this month, there appears to be room for more upside towards 40,000 in the Nifty Bank index. HDFC Bank has given a flag breakout last week and can be bought for a target of Rs 1,700 with a stop loss of Rs 1,550.

NAVNEET DAGA
SENIOR DERIVATIVES ANALYST -INSTITUTIONAL EQUITIES, YES SECURITIES

Will the Nifty cruise past 18,000 or take a breather from here?
Indian markets are defining gravity as resilience is seen amid global correction and speed of comeback. It is more about sector churning from here on, as volatility is likely to continue with the backdrop of global new flows. Post whipsaw moves, the Nifty finally managed to close above the 17,800 mark and in the near term, 18,100 is possible on Nifty with downside support seen at the 17,600 mark. However, Bank Nifty is finding it difficult to sustain above 38,000-mark and any sustenance above the same is likely to fuel a fresh rally.

SIDDARTH BHAMRE
DIRECTOR-ALTERNATIVE INVESTMENTS AND RESEARCH, INCRED EQUITIES

Will the Nifty cruise past 18,000 or take a breather from here?
Global data points in the form of currency and commodity levels are also equity positive. The sharp up move of the last 500 points in Nifty has been with disbelief and there has been a left out feeling among participants as implied volatility spiked despite markets moving higher. This up move with fewer participants may ensure markets getting support at dips. This setup leaves scope for upside in Nifty. There is some support near 17,450. Long traders should hold their positions and should not try to predict the top. High implied volatility should be used to sell options in a bullish market scenario.