In the week gone by, no further damage was done after a previous week’s hiccups.
However, the overall intra-week range was extremely small and barring one or two days, there was no major activity in indices.
One should still continue with a slightly cautious stance because the uncertainty is still looming over and till the time we do not get clarity with respect to all these developments, better to stay light with a stock-specific approach.
As far as levels are concerned, 11,550-11,650 are likely to act as immediate hurdles; whereas on the lower side, 11,350-11,200 would work as a key support zone.
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Last week, most gains were contributed by the stellar move in Reliance Industries towards the fag end and IT stocks also chipped in.
At this juncture, the banking index is clearly underperforming and is placed around a crucial junction.
We are observing a cluster of support around 22,200-22,000 and till the time it is defended, we can expect some recovery in the market.
However, if it fails to hold this, Nifty can easily slide below the key support of 11,200. So, one should keep a close eye on all these possibilities and should position accordingly.
Here are two buy and one sell call for the next 1-2 weeks:
Adani Ports and Special Economic Zone | Buy | LTP: Rs 340.55 | Target price: Rs 360 | Stop loss: Rs 332 | Upside: 6%
This stock has corrected gradually over the past couple of weeks.
However, it has now reached a cluster of support such as a converging point of two key moving averages, ’89 EMA’ as well as ‘200-SMA’ on the daily chart.
Importantly, Friday’s candle resembles a 'Bullish Hammer' pattern and hence, we expect the stock to give a recovery in the next few days.
Wipro | Buy | LTP: Rs 292.55 | Target price: Rs 310 | Stop loss: Rs 282 | Upside: 6%
The entire IT space provided a good helping hand to defend Nifty last week along with the major contributor Reliance.
However, unlike other peers, the activity in Wipro remained muted till Thursday. On Friday, this stock seems to have come out of its consolidation and finally joined hands with larger peers.
The daily chart depicts a ‘Bullish Flag’ pattern along with more than average daily volumes.
The way charts are shaped up, we expect the stock to do well in the next few days.
PVR | Sell | LTP: Rs 1,257 | Target price: Rs 1,220 | Stop loss: Rs 1,290
After the March mayhem, the stock prices initially consolidated and then gave some decent recovery in the last couple of months.
However, the up-move seems to have paused for a while and prices are in a declining mode again.
On the daily chart, prices have slipped below key short-term averages and in fact, the combination of 5 and 20-day EMA has confirmed a bearish crossover.
(The author is Chief Technical & Derivatives Analyst at Angel Broking)Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.