Ajit Mishra
Markets oscillated in a range and settled almost flat, in continuation to the prevailing consolidation phase for the week ended November 15.
Weak local cues combined with not so encouraging global markets kept the volatility high across the board last week.
However, resilience in the banking space, which holds considerable weight in the index, helped the benchmark sustain at higher levels while other sectoral indices witnessed a mixed trend.
There’s no major data lined up on the domestic front this week and markets will continue to dance to the global tunes.
On the global front, investors would keep an eye on the progress of the US-China trade deal, which is lingering from quite some time and minutes of the FOMC meeting on November 21.
In addition, fluctuation in crude oil prices and currency would also induce some volatility in the markets.
Indications are in the favor of further consolidation and we expect Nifty to continue hover within 11,700-12,100 range. Having said that, we feel it’s a healthy pause and the overall trend would remain positive.
Besides, the buoyancy in the banking index is pointing towards a strong possibility of Nifty testing a newer high in weeks to come.
Meanwhile, volatility would remain high on the stock-specific front thus we advise maintaining a balanced approach in trading, by keeping a few shorts as well.
Here is a list of top three stocks which could give 4-5 percent return in the next 3-4 weeks:
The Ramco Cements Ltd: Buy | Target: Rs 828 | Stop-Loss: Rs 778 | Upside 4 percent
Ramco Cement has formed a Cup and Handle pattern, which generally acts as a continuous pattern, on the weekly chart. The stock is holding above the support zone of long-term moving averages.
It has formed a fresh buying pivot on the chart. After a marginal dip of late, the counter now offers a fresh buying opportunity for those who missed the chance earlier.
We thus advise traders to accumulate the stock in the mentioned zone Rs 792-796. It closed at Rs 793.90 on November 18, 2019.
TVS Motor Company Ltd: Buy |Target: Rs 470 | Stop-Loss: Rs 438 | Upside 4.9 percent
TVS Motor has been rebounding in the last four months, after a sharp correction from its record high.
After the marginal dip, it’s currently consolidating in a narrow range around the support zone of 200-Days EMA on the daily chart and likely to witness a fresh surge ahead.
Further, the chart formation combined with the positioning of confirmation indicators is adding to the positivity. We advise traders to initiate fresh longs in the mentioned levels of Rs 444-448.
ACC Ltd: Sell Nov Futures |Target: Rs 1,430 | Stop-Loss: Rs 1,540 | Downside 4.8 percent
ACC has been struggling around the resistance zone of multiple moving averages on the daily chart for the past one month or so. Considering its prevailing bias and existence of strong hurdles in the 1540 zone, we expect a fresh fall ahead.
We advise traders to initiate fresh shorts as per the mentioned levels 1503-1510. It closed at 1498 on Nov 11, 2019.
(The author is VP Research, Religare Broking)
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