In the coming week, investors’ focus would be on earnings season, the outcome of Legislative Assembly elections in Haryana and Maharashtra, and trade deal
Global uncertainties on growth in developed markets, unresolved trade tensions, other geopolitical risks (Brexit, oil attacks, etc.) are keeping global fund flows on the edge
Sectors we prefer to include are private sector banks, life insurance companies, cement, oil marketing companies and gas utilities
Mazhar Mohammad advised traders to hold their long positions with a stop below 11,553 on closing basis and should book profits close to 11,770 levels.
Any dip is likely to be a buying opportunity for traders until we trade above this level.
Mazhar Mohammad advised traders to create fresh long positions in index with a stop below 11,430 on closing basis and look for initial targets placed around 11,800.
Volatility needs to move below 16 for market up move to sustain. However above moving 18, could lead to profit booking in market.
On consumer durables, he feels stiff valuations warrant a buy on dips strategy
Among sectors we prefer to initiate longs in Auto, Banking and Metal space for reasonable upside as the risk reward remains favourable.
Traders are advised to hold long positions, if any, with a stop below 11,400 on closing basis, Mazhar Mohammad said.
Traders should focus on stock-specific opportunities and retain positive bias as long as the Nifty trades above 11,342, says Mazhar Mohammad
More than the earnings announcements, investors and traders will focus on the outlook provided by the management, especially for consumption-driven companies.
Umesh Mehta recommends 5 stocks that would be wealth creators for the next 2-3 years would be Hindustan Zinc, HDFC, SBI Life Insurance, Kotak Mahindra Bank and ITC.
Pharma, Agri inputs, FMCG including, Food & beverages, IT, Paper & packaging are some of the sectors which are expected to do better comparatively
Mazhar Mohammad said for time being, upsides shall continue to remain capped around 11,420 levels unless a decisive breakout is registered above the said level
Banks could still gain market share as a significant amount of space vacated by NBFCs which are suffering from liquidity challenges. Hence, we continue to prefer the banks.
The credibility of the banking sector is badly hit by the revelations of fraud at the topmost level of management. It will not be easy for the sector to gain the investors' trust again.
Modified Call Butterfly is a four-legged strategy where one lot of Call close to current underlying level is bought against that two lots of higher strike calls are sold and one more lot of Call is bought but closer to the call sold strike
Since September 20, most stocks on the BSE 500 index have shed their gains on corporate default fears, PMC crisis and Q2 earnings
Option traders can go with Bull Call Ladder with the view to multiple support at 11,180-11,100 zones while hurdle at 11,500 to 11,700 zones
According to the O’Neil methodology, there were two follow-up entry points after the tight area formation. After both instances, the stock gave good returns
Since the earnings season has begun, volatility will remain high across the board, traders should focus more on risk management aspect and avoid naked leveraged trades.
In the S&P BSE 500 index, as many as 8 stocks fell 10-20 percent which include names like Delta Corp, Rail Vikas, Berger Paints, Bharti Airtel, Gruh Finance, Bandhan Bank, and Adani Green Energy.
Recent formation of Inverse Head & Shoulders classical pattern will give a breakout by trading only above Rs 113, suggests buying in the stock for higher targets of Rs 148.
We believe the performance is very much concentrated for now with only a few stocks that are aiding the breadth and are having the momentum.