Amid all the hustle throughout the week ended February 9, the Nifty50 index concluded the session a tad below the 21,800 zone, shedding nearly 0.33 percent on a weekly basis.
From a technical standpoint, there have been insignificant changes in the price range as the index barely moved in the entire week to project further actions. However, the 20 DEMA (day exponential moving average) of 21,680 withheld its significance by providing a cushion to the market and showcasing the bulls' resilience to not losing grip easily.
The sacrosanct support is at 21,500 for the week beginning February 12. On the flip side, the 21,900-22,000 zone remains a daunting task for the bulls, followed by the sturdy hurdle of 22,100. A decisive breakthrough beyond the mentioned support or resistance zone could only trigger the next leg of the rally in the market, and hence, it is advisable to have a pragmatic approach while keeping the zone in mind.
Till now, we have seen some interesting developments on the sectoral front and expect them to continue in the coming period.
Here is one buy call and one sell call for short term:
Apollo Hospitals Enterprise: Buy | LTP: Rs 6,437.35 | Stop-Loss: Rs 6,148 | Target: Rs 6,900 | Return: 7 percent
The entire Healthcare space has been doing well in the last few months. This counter has already given exponential returns since the March 2020 fiasco and there has been no stopping for this multi-year dream run.
On last Friday, we witnessed yet another breakout to unfold the next leg of the rally. If we take a glance at the volume activity, the price action is supported by sizeable volumes, providing credence to the upsurge. We recommend buying this outperforming stock for a trading target of Rs 6,900. The stop-loss can be placed at Rs 6,148.
Indian Oil Corporation: Buy | LTP: Rs 182.50 | Stop-Loss: Rs 194 | Target: Rs 173 | Return: 5 percent
The oil marketing companies are in a once in a lifetime kind of zone as we witnessed a massive relentless rally in the last three odd months. They have not only replicated the 2016 – 2017 up move but also have extended it by a fair margin. However, Friday’s correction was a first sort of reality check especially for IOC.
Undoubtedly, the major trend remains bullish but before resuming it, we may see some more correction in this counter. The hourly ‘Negative Crossover’ in 5 & 20 EMA combination is the main reason behind expecting this move.
Since it’s in a strong uptrend, we recommend selling on a bounce around Rs 182 – 186 with a strict stop-loss of Rs 194. The trading target for this trade would be Rs 173.
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