Global markets due to Christmas break are expected to be rangebound and sideways. We can see a divergence in RSI which will be another major hindrance for the continuation of this momentum.
December has been a historical month for Indian Market with Nifty and BankNifty making record highs.
However, this momentum is unlikely to continue in the last week of the month as we can already see shrinking momentum in Nifty on a daily basis.
It can be said that this growth of the Indian market is not organic but artificial. This rise in Indices can be attributed to the growth in the stocks comprising the Indices. It is also due to the buying pressure from biased buyers who have been buying at market highs and thus pushing the market higher.
Such considerable growth has not been seen in all stocks.
Global markets due to the Christmas break are expected to be range-bound and sideways. We can see a divergence in RSI which will be another major hindrance to the continuation of this momentum.
Here are three buy calls for the next three-four weeks:
CESC | Buy | LTP: Rs 741.90 | Target: Rs 800 | Stop loss: Rs 700 | Upside: 8 percent
This stock is consolidating just above the support level and is ripe for the breakout and is expected to rise for the next three weeks.
Hero MotoCorp | Buy | LTP: Rs 2,393.20 | Target: Rs 2,500 | Stop loss: Rs 2,300 | Upside: 4 percent
After witnessing downward trend for a long time, this stock has given trendline breakout. So, it is a great pick for the upcoming three weeks.
Ashok Leyland | Buy | LTP: Rs 80.40 | Target: Rs 86 | Stop loss: Rs 78 | Upside: 7 percent
This stock is consolidating just above the support level and is a very good buy on dips for the upcoming three weeks.
(The author is Head of Research at CapitalVia Global Research)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.
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