ETMarkets Sensible Discuss: Titan may scale new excessive & cross Rs 3,000 mark: Jatin Gohil

Following its spectacular present in Q2 enterprise replace, shares ended 5.2% increased on Friday and closed a tad beneath its lifetime closing excessive. “We consider the inventory will surpass its lifetime excessive of Rs 2,768 and discover uncharted territory, which may take it in direction of Rs 3,000,” says
Jatin Gohil,
Technical and Spinoff Analysis Analyst at
Securities,
on this interview with ETMarkets. Edited excerpts:

After the roller-coaster trip in the previous few days, the place is Nifty headed within the week forward in response to the charts?
Nifty has shaped a bearish reversal sample – Spinning Prime – at round its 50% Fibonacci Retracement stage of prior down transfer (18,096-16,748 ranges) and later, resumed its southward journey. This might drag the index in direction of its psychological stage of 17,000 initially and round its lowest stage of September 2022 (16,750) subsequently. In case the index violates its lowest stage of September 2022, the present process damaging momentum will speed up and push it in direction of the 100-week SMA, which was positioned at round 16,200-level. In case of pullback, its 50% Fibonacci Retracement stage of prior down transfer will cap the up-move, which is positioned at round 17,430-level. Nonetheless, a steady transfer above that Fibonacci Retracement stage will invalidate possible decline within the index and will assist an up-move in direction of 17,700-level.

Do you see the opportunity of Nifty Financial institution scaling again in direction of the all-time excessive stage?
Nifty Financial institution additionally witnessed an similar reversal after testing its 50% Fibonacci Retracement stage of prior down transfer (41,840-37,386 ranges) and breached its day by day rising development. There are very much less possibilities of scaling again in direction of the lifetime excessive as the important thing technical indicators are impartial on the short-term timeframe chart, whereas its near-term indicators are negatively poised.

This might drag the index in direction of its 20-week EMA (37,900-level) initially and round its lowest stage of September 2022 (37,400) subsequently. On the upper aspect, its 50% Fibonacci Retracement stage of prior down transfer will cap the up transfer positioned at round 39,600-level. Nonetheless, a steady transfer above that Fibonacci Retracement stage will negate doable fall within the index and will assist an increase in direction of 40,000-level.

The shares of two defence PSUs – Mazagon Dock and – have been among the many high gainers in BSE500 pack this week with double-digit beneficial properties. Is it time to ebook earnings?
Over the last week, midcaps and smallcaps outperformed the benchmark Nifty. For a few weeks, defence PSUs, particularly ship constructing & allied service suppliers remained in focus with optimistic momentum and reported exponential rise in a really quick span of time. Persevering with its prior rising development, Mazagon Dock recorded a brand new excessive and Cochin Shipyard rose to recent 4-year excessive throughout this week with comparatively increased quantity. This indicators that main market members are in favor of bulls. As per the present set-up, we consider that present process optimistic momentum will proceed, which is able to assist additional rise in these shares. It’s time to path the cease loss slightly than reserving earnings.

IT shares have been outperforming on the again of a depreciating rupee. Which shares are trying robust on the charts?
We consider that midcap IT counters will present higher buying and selling in addition to funding alternatives at present juncture, because the midcap and smallcap house is in focus. The counters like Larsen & Toubro Infotech,

and will stay in focus with optimistic momentum. These counters have the potential to check their current swing highs, which can assist 7-9% up transfer from the present juncture.

After Friday’s rally in Titan, what are the charts trying like for the week? Any targets that you’ve got on the inventory?
On Friday, Titan bounced after a gap-up opening and closed tad beneath its lifetime closing excessive. Spike in quantity, rise in future open curiosity and enhance in future premium indicators that main market members are in favor of bulls. We consider the inventory will surpass its lifetime excessive of Rs 2,768 and discover uncharted territory, which may take it in direction of Rs 3,000.

That are the 3-4 shares that may be on high of your radar for the week?
Our essential focus shall be on midcap pharma, FMCG and IT shares. Within the pharma sector,

and , whereas within the FMCG house, and & within the IT sector, MindTree and Coforge will stay in focus with optimistic momentum.

(Disclaimer: Suggestions, options, views and opinions given by the specialists are their very own. These don’t characterize the views of Financial Instances)