Nifty 50 on 6 December: Recap
The bulls overcame resistance with renewed enthusiasm, breaking through hesitation to push the trend decisively upward. Sustained bullish momentum, despite periodic shakeups, has bolstered market confidence. Dalal Street saw an impressive performance for the third consecutive week, ending on December 6. Benchmark indices recorded their biggest weekly gains in six months, driven by positive global trends, falling crude oil prices, and a steady RBI policy announcement. It was truly a remarkable week for trading!
Indian stock markets: Way forward
As we step into a new week, all eyes will be on the anticipated macroeconomic numbers, particularly under the pressure of the sharp rupee weakening. While FIIs are expected to increase their participation, the absence of major trend-driving factors might temper market momentum.
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On the technical front, key resistances around 24,500 on the daily charts have been decisively surpassed, keeping the bulls firmly in control. Similarly, Bank Nifty has scaled above 52,500, driven by sustained upward momentum ahead of the policy announcement.
After three consecutive days of gains, the possibility of a market pullback seems likely today. This could be a time for caution, encouraging a balanced approach rather than aggressive bets, while selectively initiating long positions.
Three stocks to buy, recommended by NeoTrader’s Raja Venkatraman:
• TIMETECHNO: Buy at ₹481, stop ₹460, target ₹525
Time Technoplast Ltd has been able to sustaining its trend in the plastic industry. The prices have displayed post a volatile phase since last 4 months and are now showing a strong case of bullishness as trends are moving steadily higher.
• FILATEX: Buy at ₹71, stop ₹67, target ₹81
Filatex India Ltd is a smallcap textile company that has managed to test the recent set of rejections and finally overcome those zones. A ‘V’ shaped recovery in the last few weeks, the breakout on Friday showed some renewed momentum. Look to initiate a buy with some more room.
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• WPIL: Buy at ₹715, stop ₹670 target ₹785
WPIL Ltd, a midcap company in the compressors and pumps industry, has seen a surge in its stock price, reaching an all-time high and the strong buying interest on a consistent basis suggests more room on the upside. Post a cons. Strong price action after taking help at TS and KS Levels is looking to move higher.
Raja Venkatraman is co-founder, NeoTrader.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
