Jayant Manglik
Markets consolidated for yet another week and settled marginally higher in the end for the week ended February 22. It was largely under the influence of global markets in absence of any major domestic event.
Sentiment was down in the first two sessions, citing mixed global markets and not so encouraging local cues. However, it pared all loses in the following sessions, thanks to rebound in select index heavyweights.
Besides, recovery on broader front further strengthened the rebound. In the end, the benchmark index, Nifty, settled closer to its crucial hurdle of 10,800; up by 0.63%.
We’re in the third month of consolidation and still there’s no clarity over the next directional move. Volatility is already high and derivatives expiry of February month contracts would add to participants’ uneasiness.
Nifty has crucial hurdle at 10,800 and its sustainability would pave way for further recovery to 10,950-11,000 zone else profit taking will resume. On downside, 10,670-10,520 zone would act as a cushion.
In present scenario, traders should focus on stock selection and trade management aspects. Also, keep a close watch on global developments.
Here are the top trading ideas which can give good returns in the near term:
Indraprastha Gas | Buy | Target : Rs 305 | Stop loss: Rs 274 | Return: 6.6 %
IGL, after a volatile swing, is hovering in a range while holding firmly above the support zone of multiple moving averages on daily chart. Further, its chart pattern combined with indicators is pointing towards gradual rise in near future.
We advise initiating fresh long positions in the given range Rs 283-286. It closed at Rs 287.35 on February 25, 2019.
Torrent Pharmaceutical | Buy | Target : Rs 1,880 | Stop loss: Rs 1,760 | Return 4.4 %
Torrent Pharma is a consistent performer in pharma space irrespective to the market scenario. After making a record high at Rs 1934.57 in January 2019, it retraced marginally in last one month and tested the crucial support zone around Rs 1750 mark recently. On February 25, it has surged strongly,
supported with decent rise in volume, indicating end of corrective phase.
We advise initiating fresh longs within the mentioned range Rs 1790-1800. It closed at Rs 1805.60 on February 25, 2019.
JSW Steel | Buy | Target : Rs 300 |Stop loss: Rs 279 | Return: 4.9 %
Mostly metal counters are witnessing recovery and JSW Steel is no different. After spending nearly a month under consolidation, it looks all set for fresh surge.
We advise not to miss this opportunity and accumulate in the given range Rs 284-286. It closed at 287.80 on February 25, 2019.
The author is President - Retail Distribution at Religare Broking
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
