Nifty could reach 23,800, analysts predict

Analysts are optimistic about the Nifty index, predicting it could reach between 23,800 and 24,000 soon. A recent analysis showed a strong bullish trend, with a long bullish candle forming on the weekly chart. The Foreign Institutional Investor (FII) long-short ratio stands at 0.47, indicating some short-covering by FIIs. For investors, stocks like ICICI Bank, SBI, and Reliance Industries are noted for their positive trends. A breakout above 23,450 could lead to more buying, pushing the index higher. However, if it drops below 23,000, there may be increased selling pressure, possibly taking the index down to 22,800-22,600. Traders are encouraged to consider a Bull Call Spread strategy. This involves buying one lot of 23,350 Calls while selling one lot of 23,600 Calls. This strategy limits potential losses but also caps maximum gains, depending on where Nifty closes on expiry. Recent market activity has shown strong upward movement for five sessions in a row. The Nifty's gains are at their highest since 2021. Analysts suggest that another rise above 23,400 could lead to further gains. Conversely, any dip below 23,000 could present a buying opportunity. Attention will also be on March's derivative contract expiry and Foreign Institutional Investor activity. Analysts recommend a "buy on dips" strategy, especially in banking, financials, metals, and energy sectors. Midcap and smallcap stocks may offer short-term trading opportunities, although caution is advised.