Street signs: Traders eye Nifty break-out, more steam left in ITC & more

Traders eye Nifty break-out
 

The Nifty50 rose 0.3 per cent last week to finish at 15,752. Technical analysts say a 150- or 200-point move in either direction can set the tone for the market. “The immediate support for the Nifty is placed in the range of 15,700-15,650, while resistance is seen around 15,900. A breakout beyond this range is required for the next directional move,” said Ruchit Jain, lead research, 5paisa.com. He noted if the Nifty manages to breach 15,900, the index may head towards “retracement resistances of 16,000 and 16,180”.

More steam left in ITC
 

Shares of ITC jumped 4 per cent in Friday's trading session. Technical analysts believe there is more steam left in the rally. “There is a fair amount of long build-up, along with an increase in open interest. Even in the cash segment, the stock has seen an increase in delivery-based trades. Also, the shift from growth to value trade is seen benefitting ITC as this offers a dividend yield of more than 4 per cent,” said an analyst. ITC, which was laggard during the market rally between April 2020 and October 2021, has gained 40 per cent in the past year, even as the Nifty has remained flat.

Opportunities in cement stocks
 

Cement stocks are back on investors’ radar because of attractive valuations, capacity additions, and improved growth prospects. According to analysts, the government's continued focus on infrastructure investments and the demand seen in urban housing are expected to drive demand. Some of the stocks have seen a correction of 30-45 per cent in the past five-six months and are now trading below their historical averages. Further, moderation in commodity prices is expected to improve margins. UltraTech, Shree Cement, Dalmia Bharat, and JK Lakshmi Cement are the stocks analysts are positive on.