Nifty 50 today: short-term outlook still remains positive, say analysts
By Vinu Lal
02:34, 5 August 2022
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The NSE Nifty 50 (India 50), despite consolidation, still carries a positive short-term outlook and volatility, analysts told Capital.com.
Key Asian markets including Australia, China, Japan and Taiwan opened trades on Friday with gains. The Reserve Bank of India’s key policy meeting outcome, scheduled for today, will remain the key focus for traders in India.
Cipla share price and Axis Bank share price could influence the National Stock Exchange index over new developments.
Nifty 50 (India 50)
“The short-term uptrend status of Nifty remains intact and there is no indication of any sharp reversal pattern at the highs.
The consolidation with high volatility is likely to continue for the next 1-2 sessions. Immediate support is placed at 17,200 and the strong resistance to be watched at 17,500 levels. A decisive move above the hurdle could pull Nifty towards the next upside trajectory of 17,800 levels,” Nagaraj Shetti, technical research analyst at HDFC Securities said.
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“Nifty again showed hesitation in staying low as traders came in to do dip buying, although higher levels attract some profit taking. For Nifty, 17,491-17,530 could be the resistance band in the near term, while a breach of 17,155 could result in acceleration of downtrend,” Deepak Jasani, head of retail research at HDFC Securities said.
Shrikant Chouhan, head of equity research (Retail) at Kotak Securities found indecisiveness among bulls and bears.
The Nifty has support at 17,250 and below the same the index could slip till 17,150-17,100. A fresh breakout is possible only after 17,450 and could move up to 17,560-17,600 levels,” Chouhan said.
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Hot stocks
Cipla
Brokerage firm Axis Securities has given a target price of INR1125 for pharma major Cipla with a defined period of one year.
The stock had closed at INR1044 on the National Stock Exchange on Thursday. Brokerages like Credit Suisse, Elara Global and Sharekhan also raised their target figures citing strong pipeline for the company, especially from its US operations.
Axis Bank
Axis Bank has decided not proceed with the deal to sell its entire stake in Axis Bank UK, a subsidiary of the private lender, to OpenPayd Holdings.
Both the parties have mutually decided not to go ahead with the transaction, which was earlier announced to stock exchanges on March 31, 2021. The bank will now initiate the winding up process of Axis Bank UK, it said in a regulatory update.
Nifty on Thursday
On Thursday, Nifty closed down 0.04% at 17,382, taking a breather after six consecutive days of upward movement.
“Technically, the bullish structure remains unchanged as the bulls showed their resilience and reciprocated from lower grounds decisively,” Osho Krishan, senior analyst (Technical and Derivative Research) at Angel One said.
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