According to Foram Chheda, the Nifty 50 has broken out of a symmetrical triangular formation, indicating that an upward rise is possible.
Foram Chheda, the creator of ChartAnalytics and a CMT technical analyst, thinks Axis Bank and Bajaj Auto seem attractive from the standpoint of F&O expiration week. In an interview with Moneycontrol, she said, “Both counters have shown persistent strength and are experiencing significant rollovers, suggesting continuing trading interest.”
Technically speaking, she pointed out that the Nifty 50 has exited a symmetrical triangular formation, indicating the possibility of an upward rise.
Foram said that the Bank Nifty’s continued support above the 57,300–57,400 level may pave the way for 60,000, the next significant milestone prior to any significant pullback, and that the Nifty 50 is well-positioned to reach the 26,000 barrier in the near future.
Do you think the Nifty 50 will stabilize over the course of the expiration week, or do you think it may surpass 26,000 in the days ahead?
Volatility is probably going to continue to be a natural component of market activity as long as global tariff negotiations continue. Technically, the Nifty 50 has confirmed the possibility of an upward surge by breaking out of a symmetrical triangular formation. The index has a good chance of breaking beyond the 26,000 barrier soon, after which it may consolidate for a while before picking back up again.
Positive developments on the GST front and solid quarterly results have also improved optimism. The market may see a resurgence of upward momentum if the current trade talks with the US produce a positive result.
With a goal of 60,000, do you believe the Bank Nifty will continue to be in unknown territory before going through a period of consolidation?
After attaining a record high of 58,261 and lately meeting the goal of a modest inverse Head & Shoulders pattern around 58,000, the Bank Nifty is still outperforming the larger Nifty 50. It is impossible to exclude out a quick retreat into the 57,300–57,400 range, which was formerly resistance but is now support. Maintaining above this level may pave the way toward 60,000, the next significant milestone prior to any consolidation.
During the monthly F&O expiration week, which two stocks would you think about placing a wager on?
From the standpoint of expiration week, Axis Bank and Bajaj Auto seem to be promising. The fact that both counters have maintained their momentum and are seeing strong rollovers suggests that traders are still interested.
While Bajaj Auto’s price action shows significant momentum and accumulation, indicating additional upside potential, Axis Bank has been sustaining higher highs on the daily charts.
Do you think a bull run is about to start for DCB Bank and Sammaan Capital?
On the monthly chart, Sammaan Capital has broken above its downward-sloping trendline, signaling the start of a bullish trend. The stock may go towards Rs 218–220, but a clear monthly finish above Rs 245—its closing level from July 2021—would indicate the start of a larger bull run and demonstrate a significant trend reversal.
However, increased volumes have helped DCB Bank demonstrate remarkable momentum, which has strengthened its bullish structure. The RSI breakthrough confirms the favorable price movement as well. A monthly finish over Rs 150, which would be the company’s highest close since March 2020, might formally indicate a new bull phase. The stock is now trading close to a critical barrier.
Are the charts expressing a strong belief that the Nifty Defence Index will keep rising?
Before going through a corrective slump that found support around Rs 7,368 in June, the Nifty India Defence Index hit a double peak at 9,159. The index has since recovered and is now stabilizing close to the 50% Fibonacci retracement of that decline. A sustained rise over Rs 8,455 would signal fresh momentum and might push the index back toward its recent top above Rs 9,159, even if the RSI is still neutral. Consolidation may go on till then.
Do you think there will be a strong surge ahead when the Nifty Metal Index begins a fresh leg of upward movement?
Recently, the Nifty Metal Index confirmed a structural breakthrough by breaking over the crucial resistance level of 10,100. The index has now had a little pullback, but it is still above the breakout level, confirming the positive bias at play. We should see any more loss as a buy-on-down opportunity, with the possibility of a new rally leg as the following stage develops.
Many analysts predict that going forward, smallcaps and midcaps will do better than largecaps. Do you share this opinion?
From a technical perspective, the Midcap Index presently seems to be in a stronger position, even if largecaps have been driving the overall market advance so far. It may see relative outperformance in the next sessions as it nears a breakthrough from its protracted consolidation period.
Smallcaps, on the other hand, can still have stock-specific, selective behavior as opposed to widespread involvement. Thus, smallcaps could provide chances on a more tactical, case-by-case basis, while midcaps might assume the leading role in the near future.