Market Trading Guide: SBI among 4 stock recommendations for Monday – Stock Ideas

On Friday, the benchmark indices extended their gaining streak for the third straight session as the Sensex ended 712 points higher at 57,570.25 and the Nifty also jumped 228.6 points to settle at 17,158.25.

“In the last couple of sessions, we witnessed back-to-back gaps which can be termed as ‘Breakaway Gap and ‘Runaway Gap’, respectively. This is a sign of strong momentum and hence, till the time we do not see today’s gap area of 17018 – 16948 being challenged or filled, we may not see a loss of momentum soon. As far as the Nifty is concerned, we may see some consolidation going ahead, but the undertone in the broader market would continue to remain strong. For the coming week, 17380 followed by 17450 are the immediate levels to watch out for,” said Mr. Sameet Chavan, Chief Analyst -Technical and Derivatives, Angel One Ltd.

“Although we see some relief globally, we advise traders not to get too complacent. It’s advisable to keep booking timely profits on existing positions at higher levels and the churning within the potential movers remains the key. The NIFTY MIDCAP50 index too traversed through its ‘200-SMA’ and the way some of the midcap counters performed this week, one should look to identify stocks from the cash segments as well,” he added.

“Technically, the line chart of NIFTY on the weekly scale indicates that we are at a very strong resistance zone. With four gap up opening in the last ten trading sessions; it would be wiser to take some profits at this stage. A weekly close above 17400 would negate this supply structure and we could see an extend move towards the 17800 mark. On the other hand; bears would take the front seat only below the 16400 mark. Till then profit booking is expected but we could witness some buying at every dip. In short trading this market might a bit difficult in the month of Aug 2022,” said Mehul Kothari, AVP, Technical Research, Anand Rathi Shares & Stock Brokers.