The benchmark Nifty 50 soared over 2.30 percent in the week ended December 15 to settle a tad above the 21,450 zone. The mid-week FOMC event added the much-needed thrust to the ongoing exhaustive developments and levitated the market sentiments to another extent. The bulls certainly defied gravity and showed no sign of fatigue.
From a technical point of view, as the Nifty index navigates into an uncharted territory, defining resistance is a bit challenging. However, with the broad-based participation and favourable global conditions, this looks very lucrative and that's where the caution is required.
Simultaneously, with the existing overbought parameters, it is advisable to focus on risk management and to keep booking profits at regular intervals. On the downside, a series of support could be seen from the 21,300-21,200, followed by the 21,100 zone in the comparable period.
It had been a tremendous week for the bulls, when all major sectoral indices kept the momentum going with their significant participation. Going forward, it is advisable to have a selective approach and look out for thematic movers amid the ongoing sectoral rotation.
Here are two buy calls for short term:
Jubilant Pharmova: Buy | LTP: Rs 510 | Stop-Loss: Rs 467 | Target: Rs 555 | Return: 9 percent
Jubilant Pharmova has seen strong buying traction in the last trading session, which was backed by robust trading volumes. On the daily time chart, the counter has seen a ‘V-Shape’ recovery, which construes a positive development in structural setup.
Also, the recent price action propelled the counter to a new 52-week high, affirming the bullish view. The major technical indicators are aligned with the robust view, and it is expected to continue its upward march in the near period.
Hence, we recommend buying Jubilant Pharmova on dips of Rs 500, with a stop-loss of Rs 467 and target of Rs 555.
Tata Communications: Buy | LTP: Rs 1,813 | Stop-Loss: Rs 1,741 | Target: Rs 1,925 | Return: 6 percent
Tata Communications has finally emerged above 50 percent of the Fibonacci retracement of the recent fall, which has been a strong resistance for quite a long time. Even the cluster of EMAs (exponential moving average) coincides with the retracement zone and the recent breakthrough signifies an astounding development in the counter.
On the oscillators' front, the counter has seen a positive crossover from the oversold territory and is likely to trigger momentum in the near period.
Hence, we recommend buying Tata Communications around Rs 1,800-1,810, with a stop-loss of Rs 1,741 and target of Rs 1,925.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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