Indian markets had a terrible start to the week gone by as the Russia-Ukraine war worsened but the damage was contained as the remaining days saw the market make some gains and the Nifty made attempts to stabilise at around 15,700.
As global uncertainty subsided, the market made a V-shaped recovery in the following two sessions. Since the market was deeply oversold, the speed at which it made a comeback was remarkable. Eventually, with some rangebound movement on March 11, the Nifty ended the week with decent gains.
It was certainly an action-packed week. Though the beginning was a bit unpleasant, we must cherish the spectacular recovery we had in the latter half of the week.
Until the previous week, we were convinced that another round of selling would push the Nifty to the sub-16,000 terrain, which the index did go into briefly, but all's well that ends well.
The way the market has rebounded, it has all the ingredients needed for confirming a bottom. But since the current situation is connected to the war, we are waiting for further confirmation beyond certain levels but practically, we have already changed our stance in the last couple of sessions.
As far as levels are concerned, 16,750-16,800 remains a key hurdle and any sustainable move above this would confirm March 8 low as a bottom. On the flipside, 16,450 followed by 16,200 are immediate supports.
We expect some consolidation in key indices and a lot of adjustment would continue in individual stocks. For the week ahead, in case of a consolidation, one should focus on stock-specific moves, which will provide excellent trading opportunities.
Here are two buy calls for the week ahead:
NMDC: Buy | LTP: Rs 157.30 | Stop-Loss: Rs 152.60 | Target: Rs 165 | Return: 5 percent
Most commodities have had a dream run in the last few months and "Metals" is certainly among the leaders. However, this stock has not moved in tandem with its peers. Recently, after undergoing a decent price correction, this stock started moving upwards and on March 11, it broke out from the 'Bullish Pennant' pattern on the daily time-frame.
If we look at the volume activity along with the positive placement of momentum oscillators, we expect the stock to perform well in the coming week.
We recommend buying this stock for a trading target of Rs 165. The stop-loss can be placed at Rs 152.60.
Granules India: Buy | LTP: Rs 308.20 | Stop-Loss: Rs 294 | Target: Rs 322 | Return: 4.5 percent
Some of the marquee pharma names did phenomenally well in the week gone by. On March 11, a few mid and smaller names kept buzzing. On the daily chart, we can observe a "1-2-3" pattern with at least twice its average daily volumes.
The stock has managed to close above its key short-term moving averages, hence, we expect the stock to play some catch-up with its larger peers.
Traders can look to buy on a decline at around Rs 305 for a near-term target of Rs 322. The stop-loss can be placed at Rs 294.
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