Technical Outlook for CNX Nifty
- After an exceptional move in Jan, 2015, the CNX Nifty index consolidated in the month of February and gained one percent on monthly basis.
- We expect index to uphold consolidation bias this month as well so traders are advised to uphold stock specific approach with buy on dips approach in fundamentally strong counters.
- For fresh buying, we prefer are private banking, finance alongside with selective counters auto, infra, capital goods, pharma and IT space. On the other hand, metal, PSU banks and selective energy counters may remain under pressure.
Sector wise Realty, Cements, Capital goods and Pharma have seen consistent long build up and good delivery based buying. Some short rollovers were evident in Nifty Futures as well possibly to hedge before the big event. Oil & Gas, and IT has been showing some short rollovers and Delivery based selling. The Bank Nifty corrected almost 9.8% in Feb. whereas Nifty corrected just 2.9%, hence under performance in Bank nifty was evident throughout the month. FIIs have been buying in stock futures couple of days before expiry though the quantum was less around 800 cr. 8700 on spot Nifty is the most important support for Nifty in this up trend.
Bank Nifty has also witnessed some short rollovers. The weighted average price for Bank nifty is at 19700 which is the support for the March series. March series has started with a secular move in sector like Banks, Capital goods, Automobiles, Cement and Pharma.