By Rajesh Agarwal AUM Capital
Benchmark indices fell, dragged by energy stocks such as Indian Oil Corp Ltd and Bharat Petroleum Corp Ltd which declined on reports the refiners may buy stakes in GAIL (India) Ltd.
The S&P BSE Sensex ended at 32,923, down 253 points while the broader Nifty index settled at 10,094, down 101 points. Also, India’s current account
deficit widened to 2 percent of gross domestic product.
In the global markets, Asian share markets dropped as caution gripped investors in a week in which the Federal Reserve is likely to hike US interest rates and perhaps signal that as many as three more lie in store for the rest of the year.
Technical Outlook
Nifty
Nifty has closed below its major moving average of 200 Simple Moving Average of 10,164 levels on daily scale. It opened flat and continued its losing streak for four consecutive days. On hourly scale, Nifty is trading around lower band of Falling Channel.
Furthermore, Oscillators like RSI & MACD are in oversold zone. Sustenance trade above 10140 levels may add upside momentum till 10,190 and 10,250 marks. Strong support is seen around 9,900-10,000 levels.
Nifty Bank
The index has continued its downfall post breakdown from its major moving average of 200 Simple Moving average. It has formed 'Bearish' candle on daily scale indicating correction to continue in near term. Next support seen around 24,000 levels. Decisive break below 24,000 marks may drag Index further lower till 23,600.
Furthermore, on hourly scale, RSI & MACD are trading around oversold zone. We are expecting Index to consolidate within a range of 24000-25100 levels.
Below are the top 5 stocks which can give up to 9% return in near term:
National Aluminium Company | Rating: Buy | Target: Rs 73, stop loss: Rs 64 | Return 9%
Mahindra & Mahindra | Rating: Buy | Target: Rs 758, stop loss: Rs 730 | Return 2%
Jagran Prakashan | Rating: Buy | Target: Rs 171, stop loss: Rs 159 | Return 3%
Indiabulls Housing Finance | Rating: Sell | Target: Rs 1150, stop loss: Rs 1216 | Return 3%
Just Dial | Rating: Buy | Target: Rs 409, stop loss: Rs 435 | Return 3%
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