Nifty seen heading to 25,300 as metals, midcap IT lead: Axis Securities' Rajesh Palviya

Synopsis

Indian equities are poised for a potential upswing, with Nifty targeting 25,300 and Bank Nifty aiming for 55,200, according to Axis Securities. Derivative data suggests a shifting base and increased upside potential. Midcap IT stocks, Hindustan Zinc, and National Aluminium are also expected to perform well. Samvardhana Motherson and Bajaj Finserv are top trading picks.

Indian equities may extend their upward momentum next week, with Nifty heading towards 25,300 and Bank Nifty likely attempting 55,200, said Rajesh Palviya, Senior VP – Technical and Derivatives Research at Axis Securities.

“Nifty managed to give a breakout of the falling trend line on the daily chart and comfortably holding above all its near-term, short-term moving averages,” Palviya said. “Looking at the derivative data, the put base concentration is moved higher, and now major put writing activity has been witnessed at 25,000 strikes. So, it clearly shows that the base is shifting higher.”

He added that call writers are moving positions to higher strikes, suggesting more upside. “So the upward trajectory is now clearly visible towards 25,200 to 25,300 in the continuation of this up move. Till the market is holding above the 25,000 level, there is a high possibility that in the coming week we may see a level of 25,200 to 25,300,” he said.

On Bank Nifty, Palviya noted that the index has crossed a major hurdle at 54,500. “For Bank Nifty also, we believe that till Bank Nifty is able to sustain above 54,500, there is a high possibility that we may attempt to cross 55,000 and 55,200,” he said.

Palviya believes midcap IT stocks offer a better near-term opportunity compared to largecaps. “If anybody wants to play out in the IT space, the midcap space would deliver a good amount of return from here onward as near-term structures are improving,” he said. For Infosys, he flagged Rs 1,550 as a key level that could trigger short covering and lead to a move towards Rs 1,580–1,600.

On metals, Palviya sees further gains in Hindustan Zinc and National Aluminium. His top trading picks for the week are Samvardhana Motherson (target Rs 111, stop-loss Rs 101) and Bajaj Finserv (target Rs 2,150, stop-loss Rs 2,055).

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"First stock is Samvardhana Motherson, very strong breakout on the weekly chart and the way the stock has attracted the long build-up up we believe that here we could see further traction on the buying side. We are projecting a target, on the downside, 101 should be kept as a stop loss. Other stock is Bajaj Finserv, which managed to give a breakout of its multiple supply zones on the weekly chart," he said.

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