By Dinesh Rohira
The Indian equity market remained volatile taking cues from the global market coupled with negative sentiment among domestic investor, which continued the bearish stance on major market indices.
Further, a global sell-off aided the Nifty to plunge below its crucial level place at 10550 despite recouping losses on Thursday’s trade. The index ended the session on a weak note at 10454 level, down by 1.08 percent in a single day.
On its daily price chart, the index formed a small bearish candlestick pattern on the last trading session of the week ended 9 February after forming a small bullish candlestick pattern on the previous day, vindicating the downtrend momentum in price.
The secondary momentum indicator signalled a selling regime on an intraday basis, although a weekly level still holds a buying trend. Further, a MACD has a negative outlook with bearish crossover on its trend indicator, suggesting a negative momentum.
With uncertainties due to sell-off in the global market and its slipover towards Indian market, the element of volatility is high at current phase, and it will be advisable to stay caution before initiating a long position.
We expect Nifty to trade at 10700 level on upside which is crucial resistance band, and downside target level at 10250 on a short-term basis. However, from a long-term perspective, we still maintain a bullish stance.
Here is a list of top 4 trading ideas which could give up to 11% return in the short term:
Steel Authority of India Ltd. (SAIL): BUY| Target Rs. 104 | Stop-loss Rs85 | Return 11%
Last week SAIL registered an uptrend breakout from its short-term moving average level placed at 86, after consolidating from 52-weeks high level seen on 8th of last month.
It decisively managed to rebound from 81 level abetted by volume growth throughout the week and settled at just 7 points below its 52-weeks high.
With price trading above all the crucial moving average level, it formed a solid candlestick pattern on the weekly price chart, attempting to breakthrough its higher band. The weekly secondary momentum indicator suggests a positive breakout with RSI level at 61 coupled with MACD witnessing a crossover from its Signal Line, indicating an uptrend phase.
The immediate support level for scrip is currently placed at 81 and resistance level is seen at 101 followed by 108. We have a BUY recommendation for SAIL which is currently trading at Rs. 93.95
Indiabulls Real Estate Ltd: BUY| Target Rs. 245 | Stop-loss Rs215 |Return 8%
Despite facing some periodical headwinds on its daily price movement, Indiabulls Real Estate managed to rebound back to uptrend trajectory after consolidating at the lower level near 183.
It decisively managed to break out from its short-term hurdle of 204 zone to 232 level during last week, although it failed to sustain and ended the session at 227 level.
On the weekly price chart, the scrip made a strong bullish candlestick pattern and directed a positive momentum to hit the upper circuit. Further, the RSI at 55 levels has given a favourable buy-level coupled with bullish crossover on MACD at 10 taking place at current phase.
A positive breakout from 200-days EMA level coupled with a considerable breakout in its daily volume indicated a positive momentum.
The scrip is facing a resistance at 259 levels and support level at 210. We have a BUY recommendation for Indiabulls Real Estate which is currently trading at Rs. 227.60
Tata Motors Ltd: SELL | Target Rs. 351 | Stop-loss Rs397 | Return 5%
Tata Motors continued to consolidate on its daily price movement from its 443 high level and registered a substantial fall towards a lower level. In the last session, the scrip breached downward from the lower band at 395 indicating a bearish momentum for the scrip.
On the weekly price chart, it formed a strong bearish candlestick pattern indicating a weak support. Further, the price is currently below its all level coupled with bearish crossover on its momentum indicator still intact, thus signifying a negative outlook.
The stock is facing a resistance at 402 levels and support at 346 levels which will remain crucial for scrip. We have a SELL recommendation for Tata Motors which is currently trading at Rs. 368.75.
Adani Transmission Ltd: BUY| Target Rs216 | Stop-loss Rs192 | Return 5%
Despite trading on sideways direction, Adani Transmissions maintained an uptrend trajectory on its long-term price chart. The short-term consolidation witnessed during an initial month, dragged the price level towards a lower trail at 178 on an intraday basis.
However, it managed to rebound positively to breach upward from its 20-days EMA, indicating a positive momentum. A positive breakout from its short-term moving average coupled with stronger volume growth enabled the scrip to form a bullish pattern on its weekly price chart.
On secondary momentum indicator, which suggested a bullish uptrend with RSI at 55.34 level coupled with positive cues on MACD trend, strengthening the positive trajectory.
The scrip is facing resistance at 218 level and support at 184 level. We have a BUY recommendation for Adani Transmission which is currently trading at Rs. 205Disclaimer:
The author is Founder & CEO, 5nance.com. 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.