Edited excerpts from a chat:
As the market flip-flopped between red and green, Nifty ended the week little changed. And now as we head into May, do you think that the index will be able to match April’s positive momentum? What are the key levels to track?
Going into the last week of April, we were a bit skeptical of continuation of momentum, as oscillators were drooping from overbought levels. While the slippages unfolded, the week ended with a doji on Friday, carrying a long lower wick. This suggests that the bulls have regrouped and many of the weak signals from oscillators prevailing at the start of last week have eased. So, we are in a better position to pursue a 25000-25600 view, but with VIX continuing to be above 18, volatility and wider trading ranges may continue.
Both Nifty Bank and Nifty PSU Bank were among the top losers in the week. What are the charts indicating at now?
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Derivative data indicates continued weakness in Bank Nifty and PSU Banks. Nearly 70% of Bank Nifty stock futures and most PSU Bank futures saw fresh short additions on Friday as well as on a weekly basis. Additionally, around 70% of near OTM and ITM call option strikes across Bank Nifty and PSU Bank constituents have witnessed short buildup, suggesting traders are positioned for further downside. A head and shoulder pattern in daily charts also points to more downsides. That said, a doji formation following a test of April lows point to regrouping of bulls in Bank Nifty. We will however, look for confirmation from a close above 55900 before persisting with upside hopes.
Cohance Lifesciences was among the top gainers in the week with 33% gain. Do you think it’s time to book profits or more steam is left?There is indeed more steam left, at least until 632, the 200 day SMA, given the presence of several continuation patterns. However, with multiple close near or above the upper bollinger band, and with oscillators appearing tightly wound, fresh entries may be delayed, anticipating a mean reversion move or a consolidation inside the 441-404 region.
Vedanta saw both demerger and Q4 earnings announcement in the week. How should one trade the stock now based on technical indicators?
Despite the decline on Friday, the key support of 267 is intact, retaining positivity. However, with value unlocking already done, and record data already past, we are not sure about the flows into the stock at the moment.
Give us your top trading ideas of the week.
Time Technoplast (LTP: 193)
View: Buy
Target: 204
SL: 187
Time Technoplast has staged a strong rebound from the recent swing low near the 175-180 zone and is trading above key short‑term supports. The stock has reclaimed the 190-195 resistance band, indicating improving price structure. Momentum indicators are supportive with RSI trending higher and remaining above the neutral zone, while MACD has posted a positive crossover, suggesting strengthening bullish momentum. Price is also holding above the Ichimoku base, reinforcing near‑term stability.
If the stock manages to sustain above 190, the upmove could extend towards 204 in the near term. However, any failure to hold recent gains may invite profit‑taking towards supports. Traders may consider maintaining a bullish bias with a stop‑loss at 187 to manage downside risk.
Shyam Metalics (LTP: Rs 874)
View: Buy
Target: 1020
SL: 815
Shyam Metalics is showing a constructive technical setup after sustaining above the 800-820 support zone, which has acted as a strong demand area in recent months. The stock has formed a higher low on the daily chart, indicating improving trend structure. Price is gradually moving above key short‑term moving averages, while momentum indicators are turning supportive. RSI is stabilizing above the midline, and MACD is witnessing a positive crossover, suggesting strengthening upside momentum.
A sustained move above the recent consolidation range could trigger fresh buying interest and open the path for a retest of higher resistance levels. As long as the stock holds above the 815 support, the broader bias remains positive and the stock has the potential to move toward 1020 in the coming weeks. Traders may consider keeping a stop‑loss below 815 to manage downside risk.