After couple of weeks of dramatic moves with respect to Adani saga, things seemed to have come to an equilibrium towards the fag-end of last week. We have certainly weathered the storm and the market has digested most of the pain from the recent fiasco.
Now since we are trading around the crucial juncture, the market is awaiting some solid trigger to come of the recent slumber phase. The breakout could happen either side but if we have to predict one, we would certainly like to stay positive. Hopefully, the contraction of range breaks out higher and the trend deciding level to watch out for would be 18,000.
This will confirm the completion of a long corrective phase. We can then see some exuberant moves in market as the sentiment is likely to improve drastically after the breakout. On the flipside, the support range is visible around 17,800 - 17,700.
We reiterate that if the benchmark has to surpass the 18,000 mark, the heavyweight banking space needs to participate heavily. Last week, banking stocks kept on sulking and hence, we failed to make a move beyond these hurdles. Hopefully it finds its mojo soon and propels the market higher.
Here are two buy calls for short term:
SRF: Buy | LTP: Rs 2,289.4 | Stop-Loss: Rs 2,230 | Target: Rs 2,370 | Return: 3 percent
After a stellar run post the COVID era, the entire ‘chemical’ space had a rough patch in last few months. SRF has been one of the rank outperformers in this pocket, underwent decent price as well as time wise correction since the latter half of calendar year 2022.
On Friday, stock prices took off sharply to confirm a ‘Bullish Flag’ pattern on daily time frame chart. If we look at the volume activity, it has risen substantially, indicating strong buying interest at lower levels.
We recommend buying this counter at current levels for a trading target of Rs 2,370. The stop-loss can be placed at Rs 2,230.
Godrej Properties: Buy | LTP: Rs 1,208.75 | Stop-Loss: Rs 1,160 | Target: Rs 1,300 | Return: 7.5 percent
This stock has been a laggard ever since it registered an all-time high of Rs 2,598 way back in October 2021. It has now reached its multi-year support cluster around Rs 1,150 – 1,200.
Taking a broader view, the stock prices have precisely rebounded umpteen times after reaching this zone. On Friday, the way stock showed a positive stature throughout the session, it validates the importance of this support zone.
On the daily time frame, we can see prices traversing '20-day EMA' (Rs 1,194) comfortably and looking at the momentum, we will not be surprised to see this move extending a bit.
Traders are advised to buy for a near term target of Rs 1,300. The stop-loss can be placed at Rs 1,160.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
