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Index View
Nifty: CMP: 22,704.70
Markets continued their corrective trend for another session, losing over half a percent. After an initial drop, Nifty fluctuated within a range and eventually closed near the day's low at 22,726. Most sectors faced pressure, with banking, financials, and IT being the top losers. Despite the decline, broader indices performed relatively better, ending almost flat to slightly negative.
The recent downturn signals caution among investors, and we expect Nifty to find support around the 22,550 level, corresponding to the 20-day EMA. Given the upcoming expiry of May derivatives contracts, volatility is likely to remain high. We recommend limiting aggressive long positions and adopting a hedged approach.
Stocks Recommendations
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Muthoot Finance | LTP: Rs 1,739 | Buy | Target: Rs 1,840 | Stop-loss: Rs 1,700
Muthoot Finance has been in a steady uptrend for over 10 months, consistently forming higher highs and lows with a gradual increase in volumes. The stock recently achieved a fresh breakout, accompanied by a significant rise in volumes, and is holding above its previous swing high. Additionally, a breakout from the squeezed Bollinger bands suggests the bullish trend is likely to continue.
Bajaj Auto | LTP: Rs 9,082.65 | Buy | Target: Rs 9,530 | Stop-loss: Rs 8,870
Bajaj Auto has been trading within a well-defined rising structure, consistently forming higher highs and higher lows. The stock recently broke out from a bullish continuation pattern and is holding above its short-term moving average. We expect the resumption of the uptrend soon.
Titan | LTP: Rs 3,427 | Sell June Futs | Target: Rs 3,340 | Stop-loss: Rs 3,480
Titan has been underperforming the benchmark index and trading with the corrective bias for over two months now. It experienced a sharp selloff with significant volumes following a breakdown from the consolidation range. Though it made a recovery attempt of late, it couldn’t hold above the long term moving average i.e. 200 DEMA and resuming the prevailing tone.
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Disclaimer: Ajit Mishra is SVP of research at Religare Broking Ltd. Views expressed are personal.
