Nifty 50 on 19 December: Recap
As investors await global cues to settle, mixed signals are beginning to emerge. The bullish momentum is slowing and Q2 earnings numbers are not really driving up momentum. As the markets are still unable to recover from the sharp drawdown seen in last few months we need to tread carefully.
Indian stock markets: Way forward
The much-awaited Federal Reserve meeting emerged as expected, but the hawkish outlook spooked the markets across the globe. Domestic markets reacted sharply and opened lower only to rebound slightly. There wasn’t much by way of local news flow to contain the volatility induced. The moves were also reasonably large, especially in IT and pharma. Trading, therefore, was quite difficult through the week, and it would have been a wonder if one came out largely unscathed in the week.
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The daily charts highlight strong resistance zones around 24900 that could not be exceeded this week, and the trends eventually gave up. At lower levels around 24000, we are observing that a constant demand is emerging, suggesting that dips are being seen as a buying opportunity. With option data reaching oversold levels we could experience a relief rally as we head into the final few days for the monthly expiry.
Three stocks to buy, recommended by NeoTrader’s Raja Venkatraman:
• Titan: Sell at ₹3,350, stop ₹3,380, target ₹3,300
With gold losing its sheen, the trends in this counter are turning negative. As the negative bias takes over, we can observe that we have been unable to hold on to the gains. With trends hinting at more downside one can look at some more decline in the coming days. Look to initiate a short.
• Wipro: Buy at ₹313, stop ₹309.50, target ₹320
IT counters are moving quite well, as the positive outlook from the rate cut will seep in. The steady momentum seen in the counters across the board will persist. With demand continuing to build post-stock split, one can consider the potential for further rise.
• Zydus Life: Buy at ₹990, stop ₹968 target ₹1,025
Zydus Life has received some US FDA approvals recent that have generated demand at lower levels. The last few days the intraday charts indicates that the bullish momentum can persist. If value resistance area around 990 is surpassed we can expect more upside in the coming days.
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.
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