Rajesh Agarwal AUM Capital
Benchmarks traded on a volatile note throughout the day on Friday and ended in red due to the heated scenario between the United States and China over import tariffs which led to global trade war fears. Moreover, banking stocks fell further after CBI filed two more fraud cases involving Union Bank of India and State Bank of India.
The S&P BSE Sensex ended at 32,597, down 410 points while the broader Nifty50 index settled at 9,998, down 117 points. Overall, Adani Ports & Special
Economic Zone, Power Grid, Infosys and Mahindra & Mahindra were the top gainers whereas, Yes Bank, Axis Bank, ICICI Bank, SBI and Tata Motors DVR
were the top losers.
Technical Outlook
Nifty
Nifty opened with gap-down amid sell-off in global market but recovered from day's low of 9951 marks. Index is trading around its 'Inflection Point' i.e. PRZ (Potential Reversal Zone) of AB=CD Bullish Harmonic pattern & Internal trend line which coincides around 9950 marks. Moreover, on weekly scale, Index is trading around its 38.2 percent Retracement level & lower band of upward sloping Channel.
Furthermore, Oscillators are trading at oversold zone. Till it sustains above 9900 levels, bounce back from current level cannot be ruled out.
Bank Nifty
Nifty Bank has formed kind of 'Hammer' candlestick pattern around lower band of 'Falling Channel' on daily scale. Sustenance trade above 29800 levels may add momentum on upside till 24000 levels which might work as strong hurdle zone. Next hurdle zone comes around 24600.
Furthermore, on hourly scale, momentum indicators like RSI & MACD are trading around extreme oversold zone suggesting Index may witness a bounce back anytime soon. Moreover, Bollinger Band (20, 2) is trading around lower band.
Below are the top 5 stocks which can give up to 6% return in the near term:
ICICI Prudential Life Insurance Company | Rating: Buy | Target: Rs 398, stop loss: Rs 368 | Return: 5%
Radico Khaitan | Rating: Buy | Target: Rs 359, stop loss: Rs 335 | Return: 4%
Jindal Steel & Power | Rating: Buy | Target: Rs 225, stop loss: Rs 205 | Return: 6%
Shilpa Medicare | Rating: Buy | Target: Rs 500, stop loss: Rs 473 | Return: 3%
Dewan Housing Finance Corporation | Rating: Sell | Target: Rs 483, stop loss: Rs 505 | Return: 2%
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