 "Stocks to buy and sell on July 11: India Cements, GMDC, Marico")
Market View
Nifty: CMP: 24,324.45
Markets fluctuated sharply within a range and ended up losing nearly half a percent, wiping out the gains from Tuesday’s session. After a flat start, Nifty plunged sharply in the early hours but a recovery in select heavyweights helped pare some losses as the day progressed. It eventually settled at 24,324, down by 0.45 per cent.
Most sectors ended lower in line with the benchmark, with auto, metal, and IT being the top losers. The broader indices also took a hit, pushing market breadth into negative territory.
The intraday slide in the index has slightly dented sentiment, but resilience in certain pockets limited the damage. We believe it is prudent to refrain from aggressive long positions in the index for now and wait for further clarity.
Additionally, we have started seeing erratic swings across the board, which are likely to intensify with the start of the earnings season. Traders should prefer a hedged approach and closely monitor their position sizes.
Most sectors ended lower in line with the benchmark, with auto, metal, and IT being the top losers. The broader indices also took a hit, pushing market breadth into negative territory.
The intraday slide in the index has slightly dented sentiment, but resilience in certain pockets limited the damage. We believe it is prudent to refrain from aggressive long positions in the index for now and wait for further clarity.
Additionally, we have started seeing erratic swings across the board, which are likely to intensify with the start of the earnings season. Traders should prefer a hedged approach and closely monitor their position sizes.
Stocks Recommendations
India Cements | LTP: Rs 295.85 | Buy | Target: Rs 315 | Stop-loss: Rs 285
India Cements has registered a breakout from the multi-month corrective phase with a strong rise in volumes highlighting a potential shift in the trend. The stock has registered a breakout from the bullish flag price pattern denotes bullish bias. Thus following the price pattern and uptick in volumes, we believe the bullish tone to continue.
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Gujarat Mineral Development Corporation (GMDC) | LTP: Rs 422.90 | Buy | Target: Rs 465 | Stop-loss: Rs 402
After a vertical upward rally, GMDC witnessed a correction after hitting record high levels. The consolidation resulted in the formation of a triangle pattern with relatively lower volumes, which denotes a lack of selling pressure. This week, the stock has registered a breakout from the mentioned pattern with supportive momentum suggesting a resumption of the up trend.
Marico | LTP: Rs 646.10 | Buy | Target: Rs 695 | Stop-loss: Rs 620
It has registered a breakout from a multi-year consolidation with strong volumes. However, some profit taking led the stock to retest the neckline of the breakout zone. It has now rebounded higher with a noticeable spurt in price and volume activity which suggests a continuation of up move in the stock.
(Ajit Mishra is SVP of research at Religare Broking Limited. Views expressed are his own.)