By Rajesh Agarwal AUM Capital
Benchmark indices slipped on Wednesday, ending a little over 10 percent higher in FY18.The S&P BSE Sensex ended at 32,968, down 206 points while the broader Nifty50 index ettled at 10,113, down 71 points. The indices posted a monthly loss of about 3.5 percent, their steepest drop for the month of March since 2015.
Shares slipped on Wednesday, dragged down by private-sector lenders such as ICICI Bank and Axis Bank, with risk appetite hurt by a fall in global equities.
Asian shares outside Japan fell more than 1 percent after Wall Street retreated overnight. Among sectoral indices, the Nifty Metal index was trading over 2 percent lower led by a drop in shares of Tata Steel, SAIL and Jindal Steel & Power. The Nifty PSU bank index also fell over 2 percent.
Technical Outlook
Nifty
Nifty has formed two consecutive 'Doji' candlestick pattern around its major moving average of 200 SMA of 10180 levels indicating indecisiveness at higher levels. On weekly scale, Index has formed 'Bullish' candlestick pattern around support of 9950 levels after four consecutive 'Bear' candle which is a bullish setup.
Trading above 10210 or below 9950 levels would dictate the trend on either side.
Bank Nifty
Nifty Bank has formed two consecutive 'Doji' candlestick pattern around its 20 EMA of 24545 levels suggesting indecisiveness around supply zone. It is
currently trading around upper band of 'Falling Channel' on daily scale.
Decisive trade above 24545 levels might take Index further higher till 24900 marks. Furthermore, Momentum Oscillators like RSI & MACD has given positive crossover which is a bullish set-up.
Here are the top 5 stocks which can give up to 11% return in the near term:
JB Chemicals & Pharmaceuticals | Rating: Buy | Target: Rs 323, stop loss: Rs 300 | Return: 4%
Container Corporation of India | Rating: Buy | Target: Rs 1268, stop loss: Rs 1225 | Return: 2%
Hindustan Petroleum Corporation | Rating: Buy | Target: Rs 357, stop loss: Rs 336 | Return: 4%
IDBI Bank | Rating: Sell | Target: Rs 64, stop loss: Rs 78 | Return: 11%
Oriental Bank of Commerce | Rating: Buy | Target: Rs 85, stop loss: Rs 96 | Return: 7%
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