These 4 stocks likely to help Bank Nifty scale 40,000: Rajesh Palviya of Axis Securities

These 4 stocks likely to help Bank Nifty scale 40,000: Rajesh Palviya of Axis Securities

Rajesh Palviya, VP - Technical and Derivative Research at Axis Securities, feels the Nifty50 is now headed towards 18,500, followed by 18,700. "If Nifty manages to close above 18,700 in the coming week, the probability of it hitting 19,000 will surely increase."

Palviya, who has been tracking the equity markets since 2001, said in the weekly expiry of October 21 for Bank Nifty, the high open interest concentration on the Call side is seen at 40,000 strike with almost 40,000 contracts and writing of 24,650 contracts, strongly signaling that Bank Nifty is likely to touch this level (40,000) in the coming week and may find resistance also. "The stocks which can drive the index are HDFC Bank, IndusInd Bank, ICICI Bank, and SBI."

Edited excerpts:

Q: What does the weekly expiry indicate about the market trend in the coming week? Will the Nifty50 hit 18,500 or 19,000 by Diwali, considering the current momentum?

Nifty has closed at an all-time high on a weekly basis, closing well above the crucial psychological level of 18,000 and is now headed towards 18,500 & above that 18,700. The options data of weekly expiry scheduled on October 21 also augments the same view as it has high open interest concentration on