The markets will continue to remain positive even as it entered the overbought zone, according to analysts.
"We will maintain 21,500 (on the Nifty) as the support level and will be looking at a target of 22,300 to 22,500," Vaishali Parekh, vice president of technical research at Prabhudas Lilladher Pvt., said. "It's a positive buy with all markets in an overbought zone."
Parekh is optimistic about the Nifty reaching the 22,500 mark and bullish about the Nifty Bank index, which is yet to cross the 48,600 mark. In terms of stocks, she recommends State Bank of India, Kotak Mahindra Bank Ltd., ICICI Bank Ltd. and Axis Bank Ltd. "All the frontline banks need to be focused on."
The benchmark indices closed at a new record for the second session in a row on Monday, led by gains in HDFC Bank Ltd., Reliance Industries Ltd. and Infosys Ltd.
Kotak Securities is of the view that the larger texture of the market is still on the positive side, according to Shrikant Chouhan, head of equity research. "But due to temporary overbought conditions, we could see rangebound activity in the near future."
For the traders, 22,000–21,950 and 73,000–72,800 will be the key support levels for the Nifty and the S&P BSE Sensex respectively, while 22,150–22,225 and 73,500–73,800 can act as key resistance zones, according to Chouhan.
Vijay Chopra, chief executive officer of Enoch Ventures Pvt., describes himself as a "cautious bull", although he is bullish about the Indian markets from a long-term and medium-term perspective.
Chopra highlighted that it's better to book profits and keep shifting doors to the ones that have not moved and have the potential to move. Railway stocks, paper and food-related sectors are certain pockets in the market where profit can be booked presently, he said.
"When valuations are getting stretched, it's high time that we start booking our profit. Stocks cannot move on forever. We have seen a vertical movement of stocks and sectors," Chopra said.
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
Also Read: Nifty 50 At 22,000: What Top Analysts Say
RECOMMENDED FOR YOU
Astral - Demand Trend To Improve In H2 FY25: ICICI Securities
Sep 13, 2024
Bajaj Housing Finance IPO - Issue Details, Financials, Investment Rationale, Risks And Concerns: Motilal Oswal
Sep 09, 2024
RBI MPC Preview - Monetary Policy In Twilight Zone, The RBI To Wait And Watch For Now: Anand Rathi
Aug 06, 2024
 headquarter at Nariman Point in Mumbai. (Photographer_ Vijay Sartape _ Source_ BQ Prime) 13_11_2023..jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
SBI Q1 Results Review - Seasonally Weak But Overall Investment Thesis Remains Broadly Intact: Yes Securities
Aug 05, 2024
POPULAR