The situation deteriorated on D-Street last week with a sharp decline in the broader indices, and in such a scenario, vertical rebound seems difficult.
We expect the Nifty to hover within 10,600-10,950 range in the coming week, Jayant Manglik, President, Religare Broking Ltd, said in an interview with Moneycontrol’s Kshitij Anand.
Q) It was a week which was dominated by earnings and global news flow. But, Nifty managed to reclaim 10,900 in intraday trade on Friday as we head towards final week ahead of Interim Budget. Do you see 11,000 on Nifty ahead of the Budget?
A) The Nifty has been consolidating for the last two months; however, participation is limited to a handful of index majors while the majority are still reeling under pressure.
The situation deteriorated further last week with a sharp decline in the broader indices. In such a scenario, vertical rebound seems difficult. We expect the Nifty to hover within 10,600-10,950 range in the coming week.
Q) How is NiftyBank looking on weekly as well as daily charts?
A) The Nifty Bank was the major dampener last week and indications are pointing towards further fall ahead. It had crucial support at 27,300 and now 26,900-26,600 zone would act as a cushion.
It may even see underperformance the benchmark in the coming week. Among the banking stocks, we feel the PSU pack is the weak link and should be preferred for short trades.
Q) List of stocks which witnessed fresh breakout based on MACD charts or any other parameter?
A) Honestly, we are not scanning stocks for a breakout these days as they generally negate the pattern during the consolidation phase of the benchmark index.
We are largely focusing on reaction, mainly in defensive pack viz. FMCG and IT, for buying while auto, metal and PSU banking counters top our list for short trades.
Q) Broader market has displaying weak signals. There were more stocks which hit a fresh 52-week low in the week gone by compared to stocks which hit 52-week highs. Do you see we could see some buying after the event?
A) We cannot ignore the possibility of bargain hunting in quality counters on dips but the overall scenario may not change soon. We suggest using a bottom-up approach for stock selection and accumulating fundamentally sound stocks gradually with long term view.
Q) Any top three stocks which investors can look at for a period of 1-month?
A) Here is a list of top three stocks which could give 2-5 percent return in next 1 month:
Dabur India Limited: Buy | LTP: Rs 430 | Target: Rs 445| Stop Loss: Rs 414 | Return 3%
After a swift rebound from 362 to 458 levels, Dabur has retraced of late and formed a strong base around the support zone of multiple moving averages i.e. ( 100/50) day EMA on the daily chart. We believe it is a healthy retracement after the strong surge and looks all set to resume the uptrend. We advise initiating fresh longs within the given range.
Siemens Limited: Sell | LTP: Rs 1,020.60 | Target: Rs 970 | Stop Loss: Rs 1,070 | Return 5%
Siemens has been trading with a corrective bias for almost five months now, after retesting its record high. It has recently witnessed rebound but could not surpass the resistance hurdle of long term moving average i.e. 200-EMA on the weekly chart.
After spending nearly a month in consolidation, it has formed a fresh shorting pivot and likely to see a fresh decline. We advise creating fresh shorts in the given range.
Voltas Limited: Sell | LTP: Rs 528 | Target: Rs 515 | Stop Loss: Rs 545 | Return 2%
Voltas has been witnessing correction for last eight months while trading within the declining broadening formation.
Currently, it is trading below the resistance zone of multiple moving averages on the daily chart and likely to see a breakdown from the same in near future. We advise using any bounce to create fresh shorts in the mentioned levels.
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