Nifty 50 on 13 December: Recap
On 13 December, Friday, the trend remained choppy, but the bulls survived the onslaught of the bears and forge ahead as we near the mid of the month. The supports of 24,600 mentioned were broken decisively only to be regained quite quickly. However, the absence of continued trends has made everyone suspect the continuance of the trends in December, too. The Nifty maintains the bullish momentum, however, the global cues keep a check on the bullish exuberance. As watchful bears await the opportunity to re-enter and evaporate the gains, we need to tread the way carefully. An eventful month is unfolding, and this could possibly decide the course of action in the next few days.
Indian stock markets: Way forward
Weekly charts indicate that the Nifty is definitely on much firmer ground despite a fair bit of hesitation last week. The lower shadows indicate that the declines were used to buy into. Currently, the trends are awaiting some trigger, we should be looking for some clarity to emerge by the end of next week. This is also highlighted by the momentum indicator, which we have used this week, called ADX and Directional Index lines. It showed some reaction last week and is now set for a resumption of the trend. As macro factors begin to get absorbed, we shall be able to witness the emergence of a new phase. For the Nifty, we still continue to remain a buyer on declines and dips near 24,500 remains a buy. We need to abandon the bullish bias once the Nifty closes below 24,500. The overall outlook remains positive; hence one should continue to look at participating on the long side.
Three stocks to buy, recommended by NeoTrader’s Raja Venkatraman:
• TDPOWERSYS: Buy at ₹465, stop ₹435, target ₹529
With TD Power Systems manufacturing generators and motors for the world, this counter displayed some revival. As trends are holding on to the potential for moving higher, we can consider that the bias in the market can help. One can look to participate as trends have turned positive once again.
• ZENSARTECH: Buy at ₹806, stop ₹775, target ₹870
This IT company is a dominant player and holds a prominent position as a leading IT services company in India. After a sharp decline since August this year, the prices have revived strongly on the back of some robust action in the IT space. Now, poised at heading beyond the cluster highs, one can consider going long.
• KIRIINDUS: Buy at ₹645, stop ₹625 target ₹685
The mid-cap chemicals company is always in demand from the retail space and the steady rebound from lower levels in the last few days highlights more upside potential. As prices move beyond value area resistance around 630, we can consider some trended action in the coming days. Look to initiate a buy opportunity.
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 making any investment decisions.
