With massive sell-off in bellwether stocks like the HDFC twins, the banking and NBFC scrips began tumbling in tandem. The benchmark index Nifty still managed to fall lesser (1 percent), the real turmoil was in other indices like Bank Nifty and Nifty Financial Services as they plunged more than 2 percent on Friday.
If things worsened with respect to the banking conglomerates, we may see some more profit-booking in the current week.
However, we are of the opinion that if there is no aberration globally, we may see return of buying at key supports.
As far as levels are concerned, 18,000, followed by 17,900, are to be seen as key supports, whereas on the flipside, the sturdy wall once again stands at 18,150 – 18,250. It would be interesting to see how things shape up in the first of the week.
Here are two buy calls for next 2-3 weeks:
NOCIL: Buy | LTP: Rs 232.30 | Stop-Loss: Rs 222 | Target: Rs 250 | Return: 8 percent
This stock has been a laggard since the last eight odd months. We saw it correcting steadily from September month’s highs around Rs 290 mark. However, recently the price decline got arrested after reaching its previous swing low of Rs 200.
Initially, the base building was visible and now the stock prices have gained some momentum in the upward direction. On Friday, we witnessed a good price-volume breakout from a recent cluster of resistances around Rs 220.
Based on the above evidences, we recommend buying for a trading target of Rs 250. The stop-loss can be placed at Rs 222.
Hitachi Energy India: Buy | LTP: Rs 3,729.80 | Stop-Loss: Rs 3,440 | Target: Rs 4,100 | Return: 10 percent
The stock prices have been oscillating within the boundaries of a ‘Rectangular’ configuration since the last 6 – 7 months. It had cemented its position around the Rs 3,000 mark and now with the broader market finding its mojo back, this stock too started performing well recently.
We can see volume activity picking up steadily in the ongoing up move and on Friday, the stock literally burst through its recent hurdles with gargantuan volumes. This has unfolded the fresh leg of the rally.
Hence, considering the risk reward, we recommend buying on a decline around Rs 3,700 - 3,660 for a near-term target of Rs 4,100. The strict stop-loss needs to be placed at Rs 3,440.
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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