Nifty Outlook
This week, markets behaved like a double-edged sword as we saw some follow through selling in the initial part after last week’s intimidating selling and then the latter part was clearly dominated by the optimistic traders. In fact, the momentum was so strong; the Nifty managed to recover previous four days of losses in last couple of sessions to eventually end up reclaiming the 10250 mark on a closing basis.
Also Read
At this juncture, many would have started assuming that the market has completed its recent correction and similar to last two occasions, the index is heading for new highs after a truncated corrective move. We do not want to challenge it but looking at above mentioned evidence, we don’t belong to this bandwagon at this point in time. Going forward, 10273 – 10312 would be seen as immediate hurdles; whereas, on the lower side, 10220 – 10180 needs to be tracked quite closely as a violation of this support may result into further weakness towards 10050 – 10000. Traders are advised not to get carried away by this momentum and rather use such relief rallies to exit existing long positions.
Stock recommendations:
Piramal Enterprise - Bullish
Last Close – Rs 2,879.95
Couple of weeks back, we saw this stock breaking out from a near term congestion zone and thereby confirming a ‘Triangular’ pattern around 2750. However, due to lack of follow up buying, the stock consolidated around its breakout point. On Friday, a massive buying resulted into a resumption of uptrend, which was supported by huge volumes. Going ahead, the stock has a potential to surpass the 3000 mark. Hence, we recommend buying on a minor dip for a target of Rs.3060. The stop loss can be fixed at Rs.2730.
Godrej Consumer Products - Bullish
Last Close – Rs 1,007.65
Last week, the stock prices broke out from the near term consolidation around the 990 mark. The volume activity during this price development picked up substantially; providing credence to the breakout. In addition, the ‘RSI-Smoothened’ oscillator traversed the 70 mark in upward direction, which we believe would provide the impetus for next leg of the rally. Short term traders can look to buy this stock for a target of Rs.1051 by following a strict stop loss of Rs.953.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in