The market ended last week in the negative terrain, shedding 1.80 percent from its previous week’s closure with the Nifty settling down at the 17,100 level. Intense sell-off around the world dented the market sentiment and, mirroring which, the Nifty tumbled below the 200 SMA (simple moving average - 17,451).
However, the last trading session could be seen as constructive development for the markets as the index revived from the crucial support of 17,000-16,900 zone. On the technical front, we are not entirely out of the woods and the broader trajectory remains tentative, but we may expect some bounce in the near term.
As far as levels are concerned, the recent swing low of 16,900-16,850 is likely to act as the sheet anchor’s role, and it is highly anticipated that the dip would augur well for the bulls.
On the flip side, 17,200-17,250 is the immediate hurdle, followed by the sturdy wall of 200 SMA placed around 17,400-17,450 odd zone.
Going ahead, any relief on the global front could act as the catalyst to provide the much-needed impetus for our market to surge upwards. Hence, we need to keep a close tab on global developments in the coming week.
Traders are advised to avoid aggressive bets and look for stock-specific action, while investors could now seize this opportunity by initiating accumulation in good blue-chip companies in a staggered manner.
Here are two buy calls for short term:
Godrej Consumer Products: Buy | LTP: Rs 947 | Stop-Loss: 905 | Target: Rs 998-1,012 | Return: 7 percent
Godrej Consumer Products has seen a strong spurt in the last two trading sessions, backed by notable volumes on the daily chart, signifying positive development in the counter.
On a technical aspect, the stock is on the verge of a breakout which is being supported by a positive crossover on the 14-day RSI (relative strength index), adding to the bullish quotient.
Hence, we recommend buying Godrej Consumer Products for target of Rs 998-1,012 and keep a stop-loss of Rs 905.
KPIT Technologies: Buy | LTP: Rs 869 | Stop-Loss: Rs 820 | Target: Rs 920-940 | Return: 8 percent
KPIT Technologies is in a secular uptrend and is hovering in a cycle of higher highs – higher lows, and is currently at its lifetime high. The stock has surged on the back of robust volumes in the past couple of trading sessions, adding to a bullish quotient.
The primary indicators align with the trend suggesting a continuation in the movement in a comparable period.
Hence, we recommend buying KPIT Technologies with a target of Rs 920-940 and keep a stop-loss of Rs 820.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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