We must believe that we are in an uptrend, and any significant dip in the upward movement should be considered a divine opportunity. Generally, the 20-day exponential moving average (EMA) is considered an optimal buying opportunity for short-term and midterm investors. Yesterday, Nifty closed above its 20-day EMA, which is close to the 24300 mark. This level will now act as a crucial support range.
We are just 0.8% away from Nifty’s all-time high, and there is a probability that within 10 days, the market could touch a fresh all-time high. Following that, a small pullback movement may occur, but Nifty is likely to reach the 25000 mark before that.
In this moment, sectors such as Energy, Metal, Media, IT, Banks, and Infrastructure will be more focused.
We have consistently emphasized that the major trend of the market is still up, and every dip is to be considered a buying opportunity in an uptrend. However, valuations were very high, so we suggested waiting for some dip opportunities, which the market provided on budget day. The lower price rejection was observed below the 24200 mark.
We also need to consider that inflation and unemployment are still burning issues in our economy, along with the lowest value of the Indian rupee compared to the dollar, which is reducing India’s buying power in global markets. Although there will be positive news for certain sectors, these issues remain a cause for concern.
On a monthly timeframe, Nifty is still trading in an overbought zone, and after reaching another high, a price correction is likely. The key range to watch for the August series will be 23900 as key support and 25480 as major resistance.
5 STOCK TO WATCH IN AUGUST-
APOLLOTYRE
BERGEPAINT
AARTIIND
TATAMOTORS
L&T
According to VLA Ambala, SEBI Registered Research Analyst.
Would you like any specific adjustments or additional points to be included?
Analysis by SEBI Registered Research Analyst VLA Ambala.
Disclaimer: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, and technical analysis.
Stay cautious and keep an eye on key levels and upcoming budget announcements to adjust your strategies accordingly.
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This analysis and recommendations are provided by SEBI registered research analyst VLA Ambala.
Tags: stock market, nifty