The Nifty should find support between 16,000 and 16,100. Last week, the Nifty lost 2.3%, lagging most Asian counterparts. Analysts say the Nifty may hit a ceiling around 16,400.
Technically, the Nifty has formed a bearish candlestick pattern, trading in a lower top lower bottom chart structure with support near 16,120-16,140
A breach below this zone might bring selling pressure to 15,900-15,950. Upside resistance is 16380-16450. Above 16,450, Nifty might reach 16,680-16,700.
Largecaps and midcaps are preferable over smallcaps. Defence stocks like, L&T, and frontline auto firms like and are positive, while banking and NBFC stocks are shorting.
According to our quant models, FMCG and auto will be strong, while banks and metals would be weak. Any rally should be utilised to lighten holdings or construct shorts
Regarding index rebalancing, we like
Long and short bets. Ambuja is 5% lower than Friday's close. All opportunities aim 10-13%.