We always say ‘all’s well that ends well and this week’s price action is the perfect example of it. In the first four sessions, bulls and bears had an equal share but Friday became the real decider.
The real catalyst behind this optimism was the cooling off in the global bourses as well as various asset classes. Since our markets had the inherent strength, this development provided the impetus for the move towards 15,200.
Now, the way things are placed, retesting the record high of 15,431.75 looks eminent. Before this, 15,220 – 15,340 are the levels to watch out for.
On the flip side, it is important to note that the immediate base has shifted higher towards 15,000 – 14,900, which is an encouraging sign.
Looking at the broad-based participation on Friday, especially from the banking space, we will not be surprised if market heads towards a record high in the first half of the forthcoming week.
In fact, if all the other factors support, we may see new highs also in the coming sessions. However, having said that we should not become too complacent and keep a close track of how global markets behave over the next few days.
Any aberration on this aspect may again dent the possibility of a short-term rally. It is better to take one step at a time and continue with a stock-specific approach by following proper risk management.
Here are stock recommendations for the next 3-4 weeks:
Piramal Enterprises: Buy | LTP: Rs 1,728 | Target: Rs 1,835 | Stop Loss: Rs 1,668 | Upside 6%
After seeing a spectacular recovery from March 2020 fiasco, the stock finally took a breather around the ‘200-SMA’ on the weekly chart. The stock prices underwent some time-wise as well as price-wise correction over the past three months.
However, looking at the past few weeks’ price action, it appears that the stock has cemented its position around the previous breakout point of Rs 1,600. This coincided with the rock-solid support zone of the weekly ’89-EMA’ as well.
On Friday, we witnessed the first sign of strength as we saw a breakout on the smaller time frame charts. Looking at this evidence, we recommend going long for a target of Rs.1835 in the coming days. The strict stop loss can be placed at Rs.1668.
Jamna Auto Industries: Buy| LTP: Rs 77| Target: Rs 88| Stop Loss: Rs 69| Upside 14%
This auto-ancillary stock has been one of the rank outperformers over the past few months. We have been witnessing a series of higher highs higher lows in all time frame charts.
Recently, most of the larger names within the ‘Auto’ universe have undergone a decent price correction; but this stock chose to move sideways rather than participating in the corrective phase.
Now on Friday, it just took off and managed to traverse the recent congestion with ease. Looking at the volume activity, we may see this stock knocking on the doors of the three-digit mark very soon.
For Momentum traders, we recommend buying on a dip towards 75 – 73 for a target of Rs.88 in the coming days. The strict stop loss can be placed at Rs.69.Disclaimer: The views and investment tips expressed by 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.