Generally, the Muhurat Trading Day is considered a lull session but this time, we kicked off the new SAMVAT 2079 as well as the week with a decent bump up on Monday (October 24). Importantly, unlike most of the Muhurat sessions, the gains were here to stay as we managed to hold the initial lead convincingly. This was followed by back-to-back gap-up openings but the follow-up was clearly missing. Eventually, the rangebound week ended with more than a percent gains on a weekly basis.
Although, despite being a truncated week, we managed to add something on week-on-week basis; practically, the trading action was very dull. Market failed to capitalize on all head-starts as we saw some challenges around the 17,800 mark.
On the other hand, the bulls were successfully able to defend 17,600, which made the weekly range to shrink to merely 200 points. In our sense, markets have opted to take some breather before unfolding the next leg of the rally.
As far as supports are concerned, 17,600 - 17,500 are to be treated as key levels and till the time, it remains unbroken, there is no reason to worry for. On the flipside, it's a matter of time, we would see Nifty surpassing 17,800 to retest the psychological junction of 18,000.
Traders are advised to remain upbeat and keep a close watch on thematic moves which may get unfolded in the first half of the forthcoming week.
The banking has taken a pause after the recent run but soon it is likely to move beyond all-time highs to enter an uncharted territory.
Here are two buy calls for next 2-3 weeks:
Sun Pharma Advanced Research Company: Buy | LTP: Rs 251.40 | Stop-Loss: Rs 236.8 | Target: Rs 276 | Return: 10 percent
SPARC has witnessed a consolidation breakout on the back of robust volumes and surged above all its major EMAs (exponential moving averages) on the daily time frame. Simultaneously, in the last couple of sessions, strong traction has been seen in the overall sector.
And with such a strong technical setup, the stock is expected to gauge momentum in the comparable period.
If we look at the weekly chart, we can see trend changing to ‘uptrend’ as it confirmed a ‘higher top higher bottom’ after a long time. Hence, we recommend buying for a near term target of Rs 276. Traders can participate by following strict stop-loss at Rs 236.80.
Jubilant Pharmova: Buy | LTP: Rs 371.50 | Stop-Loss: Rs 348 | Target: Rs 404 | Return: 9 percent
This stock has been off-radar for more than 15 months now. In this period, it has fallen substantially after making a record high of Rs 999.
Recently, after undergoing some decent consolidation, the stock prices are attempting to make a strong comeback. On Friday, we witnessed first key hurdle getting surpassed with some authority as the stock managed to confirm a decisive breakout with sizable volumes.
Considering the placement of momentum oscillators, we expect the northward to continue for a while. Traders are advised to buy around Rs 367 – 364 for a near term target of Rs 404. The strict stop-loss needs to be placed at Rs 348.
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