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The Nifty could test 17,500 in the coming days after a sharp rise in recent weeks, said technical analysts. The index is up nearly 10% since August. It gained 3.7% last week to close at 17,323.60 and outperformed most regional peers except Japan and China. and are being favoured among the large-cap stocks in the near term.

GAURAV BISSA
VP-TECHNICAL AND DERIVATIVES, LKP SECURITIES

What should investors/ traders do?
Investors and traders should continue to look for sectors which are either outperforming or are witnessing retest of breakouts to have higher probability of success. Stocks like JSW Steel and Kolte Patil look good for another 7-8% upside. In midcaps, Triveni Engineering looks good for a 15% upside in the coming days.

RAJESH PALVIYA
HEAD-TECHNICALS & DERIVATIVES, AXIS SECURITIES

What should investors/ traders do?
We are suggesting a ‘call ladder’ strategy for this weekly expiry on September 9, which involves buying one lot of Nifty 17,350 call at Rs 86 and selling one lot each of 17,500 call at Rs 36 and one lot of 17,600 call at Rs 19. The maximum profit of Rs 5,950 will be attained at 17,500 levels, while the strategy will start making loss above 17,720. The cost of the strategy involves outflow of Rs 1,550 which is the maximum loss if Nifty trades and remains below 17,380 levels at expiry. Above 17,720 it is advisable to exit the strategy in total to avoid unlimited. Breakeven points of the strategy are 17,720 on the upside and 17,380 on the lower side. Stocks like Godrej Consumer, Reliance, TCS, SBI Life, Brigade, DLF, Deepak Nitrite and Aurobindo Pharma can do well in the near term.

NAVNEET DAGA
SENIOR DERIVATIVES ANALYST – INSTITUTIONAL EQUITIES, YES SECURITIES

What should investors/ traders do?

We are recommending a call ratio spread strategy for Nifty expiry on September 9 by buying Nifty 17,200 call and selling strike 17,400 call in a 1:2 ratio, with total outflow of around 40 points. Mid-cap IT stocks continue to surprise on the upside. We reiterate a ‘buy’ on Mindtree with upside target of Rs 4,000 and stop placed at Rs 3,670.

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