The Nifty50 managed to close near 10,700 level for the week ended June 1. The recent Nifty move from the lows of 10,417 is supported with buying interest in some of the heavyweights counter whereas midcaps have struggled to perform.
In the market, further correction cannot be ruled out, on monthly chart Nifty has formed a ‘Doji’ candlestick pattern which indicates lack of conviction at higher side. The immediate support for Nifty is placed at 10,550 and immediate resistance is placed 10,750 followed by 10,800.
The Nifty Rollover for June series stood at 63 percent while the Bank Nifty Rollover was recorded at 75 percent. Going through the rollover data, we can see that the rollover of 63 percent are below 3-month average of 68 percent.
Foreign institutional investors (FIIs) are continuously curbing liquidity in the cash market as they sold equities worth Rs 11,658 crore last month. They have been forming shorts in index futures, which are mostly rolled over.
But, the way few developments happen especially in the banking space on Thursday, the overall picture has become slightly tricky.
As of now, we expect the index to remain in a slightly wider range of 10,600-10,900 for the initial part of the series. The possibility of some kind of profit taking happening still cannot be ruled out.
Hence, investors need to be patient and should only focus on quality proposition who are likely to outperform the broader market.
Stocks hitting 52-week low:
Stocks hitting a fresh 52-week low when the benchmark index is 4-5 percent below its record high clearly denotes their (stocks’) feeble nature.
Traders need to put some extra efforts now and try to identify good stocks which are undergoing a corrective phase and are potential candidates to do better in the larger degree.
Small & Midcap:
Historically, it is proven that the ‘small cap’ and ‘midcap’ universe do well or outperform the benchmarks when we are in the later part of the trended up move.
At this juncture, markets are clearly experiencing their corrective phases (price wise as well as time-wise) and hence, one should not venture into it aggressively.
Stock ideas for next week:
Here is a list of top stock ideas which could give up to 10-11% return in 1 month:
Pfizer: Buy| LTP: Rs 2,565| Target: Rs 2,855| Stop loss: Rs 2,405| Return 11%
Among all the pharma stocks, this stock has performed very well during the last few sessions. On the daily chart, the prices are above the 20-DEMA indicating a strong trend in the coming sessions.
Further, the 'RSI' on the daily chart is in an upward direction which indicates a positive bias. Also, on the weekly chart, prices have taken a strong support at 10-DEMA which indicates an uptrend.
In addition, if we try to analyze ‘Bollinger Bands’ it clearly reflects bullish stance on the counter. Considering all the above scenarios, we recommend buying this stock at current levels for a target of Rs 2,855 over the next one month, and a stop loss should be fixed at Rs 2,405.
KPIT Technologies Ltd: Buy| LTP: Rs 285.75| Target: Rs 319| Stop loss: Rs 266| Return 11.6%
On the weekly chart, the stock price is trading well above the 10-DEMA & 50-DEMA which reflects a positive bias. The stock is trading near its all-time high which shows its outperformance in the recent market turbulence.
Prices have resumed its uptrend after sideways consolidation which signals upside movement. Also, among the oscillators, stochastic is in rising direction and in the overbought zone with a reading of around 94.
Thus, we recommend buying this stock at current levels for a target of Rs 319 over the next one month. The stop loss should be fixed at Rs 266.
Dabur Ltd: Buy| LTP: Rs 386.75| Target: Rs 427| Stop loss: Rs 364| Return 10.4%
The stock seems to be enjoying its multi-year bull run and price-wise, the stock price is trading well above 10-DEMA indicating bullishness in the counter. The stock is trading near all-time high which shows its outperformance in the recent market turbulence.
Further, if we try to analyze 'Bollinger Bands', it clearly goes with our bullish stance on the counter. Considering all above scenarios, a strong upside from current levels cannot be ruled out.
Thus, we recommend buying this stock at current levels for a target of Rs 427 over the next one month, and the stop loss should be fixed below Rs 364.Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.