Chartist Discussions Why Sameet Chavan believes the IT index may surpass past highs but the Bank Nifty will not exceed 50,000 in January

 Chartist Discussions Why Sameet Chavan believes the IT index may surpass past highs but the Bank Nifty will not exceed 50,000 in January

Chartist Discussions Why Sameet Chavan believes the IT index may surpass past highs but the Bank Nifty will not exceed 50,000 in January

In the short run, the IT industry is probably going to do better than the benchmark indexes. According to Sameet Chavan, the company has already finished its 20-month pricing and schedule adjustment phase.

It's obvious that Bank Nifty will surpass the 50,000 mark if we have to look ahead a few months, but it's hard to say that it will do so in January alone following such a strong rally in a short amount of time, according to Sameet Chavan, vice president of complicated and derivatives at Angel One, in an interview with Moneycontrol.

Therefore, given the present trend, it shouldn't come as a surprise to see Nifty FMCG advancing in the direction of 58,000–59,000 in the next week; but, if it has to hit 60,000 or higher, heavyweight counter ITC Participation is required. He states.

Despite changes in the benchmark indexes, Chavan, who has over 16 years of stock market expertise, thinks the IT sector would likely do better in the near future. "We anticipate that the IT index will test its prior high of 39,500 and shortly reach 37,000–38,000.” Let's examine the discussion we had with him.

Do you think the January series will push the Nifty 50 past 22,000–23,000 even if it seems overbought right now?

It's hard to predict where the momentum will begin in a rise this powerful. Observations, however, suggest that despite the current levels—which are indicated by overbought indicators and a notable departure of prices from important moving averages—caution is required despite the positive sentiment.

Because of the recent encouraging developments, the market is now concentrating on the pre-Budget move (Interim Budget), making the following sessions crucial. Consequently, it is best to concentrate on how the market will act in the first half of January rather than speaking out on any level.

Do you think the January series will see the Bank Nifty surpass 50,000?

This high beta index also has similar remarks. It is certain that Bank Nifty would reach the 50,000 mark in a few months, but given its recent explosive ascent, it is difficult to schedule its conclusion for January.

Do the indicators indicate that the Nifty FMCG index will reach 60,000 in the next months?

With a weighted average of almost 73%, ITC, Hindustan Unilever, Nestle, Britannia Industries, and Tata Consumer Products are the top five contributors of the Nifty FMCG. With the exception of ITC, all others are now experiencing significant momentum, indicating that the index is probably going to keep rising in the next series.

As a result, given the present trajectory, it wouldn't surprise us if the Nifty FMCG index moved in the next week, ideally around 58,000–59,000. But heavyweight rival ITC must intervene if it is to attain the milestone of Rs 60,000 and more. Because of its weight, which is around 31%, it will give you the extra push you need to achieve new heights.

Which are your top two choices for January that have lately shown promising breakthrough signals?

After a protracted period of dormancy, the IT industry as a whole at last found its spark. In recent months, the majority of frontline and midcap counters have already made substantial progress. But 'Wipro's' moment has now arrived to shine. Just last week, the stock validated its multi-month breakthrough. Our projected pricing range for the next series is between Rs 498 and Rs 510. Buying may be done on dips with a stop loss of about Rs 448.

We favor KRBL from a wider market perspective since it has begun exhibiting early indications of recovery. The price volume breakthrough on Friday has been reinforced by the prices, and we are bullish with a target of Rs 398 and a stop-loss at Rs 362.

Do you believe that Nifty IT has witnessed consolidation before heading up to levels between 37,000 and 38,000 in the next weeks?

Despite the change of the benchmark indexes, we believe that the IT sector would likely outperform in the near future. The 20-month price and time corrective period is already over.

Thus, it will be a great chance to purchase in this sector in the event of any slight consolidation or drop. It is not out of the question for the IT index to challenge its prior high of about 39,500 and we anticipate it will soon rise to 37,000–38,000 levels.

Is there a chance that the Nifty Auto index will see a significant decrease in 2024 based on the chart structure?

Among the few industries that began its bull run last year was the auto industry. There haven't been any restrictions on this place since then. Since the car industry is growing at a rapid pace, it is really thought of as a gauge of the nation's economy.

Even with its tremendous velocity, one should not get comfortable at these levels. Technically speaking, the "RSI-smoothed" oscillator on the daily chart shows "negative divergence." Thus, prior to initiating the subsequent stage of the rally, we might continuously search for outperformance of this rank. Those that reside there seem to be somewhat relieved. After examining Hindustan Unilever's data, do you predict a significant breakthrough for the company?

For the last several years, this stock has done nothing at all, but suddenly there are some preliminary indications of a comeback. Shorter time frame charts show that prices are rising daily and, more significantly, that they have closed over their intermediate barrier of Rs 2,640. This company still needs to gain momentum, and there's a good chance it will in the next few days given that the FMCG index is trading at all-time highs.