We had an awful start to the last week as the geopolitical concerns between Russia and Ukraine escalated over the last weekend. This resulted into a complete melt down in global markets, including Indian stocks. In this process, Nifty went on to test the crucial support of 16,800 by marking huge single day cut of over 3 percent on February 14. Such developments can be deceptive at times, and they are too sensitive to any news flow regarding this.
Similarly, on the next day itself, the tensions between these two neighbouring nations eased out a bit which resulted in a V-shaped recovery to recoup all losses. During the remaining part of the week, the index did nothing as it remained within a slender range to conclude the week with a nominal loss slightly over half a percent to the previous week’s close.
If we consider the weekly performance, it appears as if markets were lacklustre and there was no major price action during the week. But if we dive deep into it, we realize that the week was full of drama and extreme volatility at least for first couple of sessions. Fortunately, there was no major damage done on the weekly closing basis as we are sitting comfortably above the 17,000-mark.
Can we say worst is over? Then answer is no, because till the time this war kind of scenario does not subside completely, the uncertainty is likely to loom over on the markets across the globe. So in such times, it's advisable not to trade aggressively and should avoid carrying positions overnight.
As far as levels are concerned, we witnessed some nervousness around 17,450 – 17,500. So, if bulls have to regain any strength, they need to surpass these levels with some authority.
On the flipside, 17,000 followed by 16,800 is to be seen as make or break levels. In case of any aberration on the global front, market will have to face challenging times after sliding below this sacrosanct support.
Here are two buy calls for next 2-3 weeks:
Voltas: Buy | LTP: Rs 1,252.50 | Stop-Loss: Rs 1,212 | Target: Rs 1,310 | Return: 4.6 percent
This stock has seen a smart surge in last 3 – 4 trading sessions despite the broader market sulking a bit. With Friday's up move, the stock prices have confirmed a bullish breakout from the 'V' pattern due to its steep rise. This pattern has a bullish implication when accompanied with higher-than-average volumes.
All these requirements do meet here and hence, we recommend buying this stock on a small decline towards Rs 1,240 – 1,235 for a trading target of Rs 1,310. The stop-loss can be placed at Rs 1,212.
Eveready Industries: Buy | Rs 359.70 | Stop-Loss: Rs 318 | Target: Rs 392 | Return: 9 percent
In last three trading sessions, all of a sudden, the tide turned upwards for this stock. Before anyone could even realize, the prices have soared more than 20 percent in such a short span.
More importantly, if we take a glance at the volume activity, we can see some abnormal volumes in this counter, which is an indication of immense buying interest.
Since the stock has moved quite a lot, we recommend buying this stock on a decline towards Rs 345 – Rs 340 for a near term target of Rs 392. The stop-loss can be placed at Rs 318.
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