Akshay Bhagwat, Senior Vice-President of Derivatives Research at JM Financial Services, has highlighted key support and resistance levels for the benchmark Nifty50. He anticipates that the index will find robust support at 25,500, while 26,000 serves as an immediate resistance level. Bhagwat noted that the index is gaining momentum, reinforcing a positive outlook for the market and suggesting the potential for Nifty to approach its all-time highs in the near future.
In his analysis of the IT sector, Bhagwat expressed caution, warning investors that the upcoming months could present challenges. He advises staying clear of IT stocks during this period.
Bhagwat also shared insights into Bharat Heavy Electricals Ltd (BHEL), which recently launched an offer-for-sale (OFS) with a floor price of Rs 254 per share. He indicated that this corporate move could exert downward pressure on the stock in the short term. According to him, BHEL could remain in a trading range of Rs 250-260, although he believes there is potential for the stock to rebound to Rs 300-plus levels if viewed with a six-month investment horizon.
Regarding HDFC Bank Ltd, Bhagwat mentioned that the stock is expected to oscillate within a specific range, likely trading between Rs 900 and Rs 970. He encourages investors to maintain their positions with a stop-loss set at Rs 895.
Finally, when discussing Tata Power Company Ltd, Bhagwat characterized its current structure as neutral. He suggests that investors might consider holding the stock with a stop-loss at Rs 340 to aim for potential upside targets between Rs 410 and Rs 412 over the next six months.
Overall, Bhagwat’s perspective reflects a cautiously optimistic view on the market and specific stocks, indicating opportunities for investors while also advising caution in certain sectors.