Recap: Nifty 50 on 4 December
Nifty recovered from its jolt in November and has risen smartly ahead of the RBI policy meeting. It maintained its bullish bias by recovering swiftly towards the close of each day after sharp selloffs at higher levels. The turnaround comes amid election results and mixed Q2 numbers. Chances of a move beyond 24,500 have kept the rally alive.
The way forward
The Nifty clearing prior resistance levels on the daily chart has forced the bears to rethink. Even as the two groups fight for dominance, chances that the markets will fall lower seem to be fading. A pullback to the trendline support level around 24,250-24,300 would be a good time to initiate long positions. Overall, markets continue to present opportunities to buy the dip amid profit-booking.
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Three stocks recommended by NeoTrader’s Raja Venkatraman:
• TAJGVK: Buy at ₹364, stop ₹350, target ₹398
This counter has been seeing steady buying interest around 300 and there was some strong buying yesterday. The stock price has had strong tailwinds after facing some resistance around ₹350.
• CDSL: Buy at ₹1,718, stop ₹1,675, target ₹1,795
CDSL, a leading finance company, has been performing exceptionally well in the stock market. After some consolidation around ₹1,400-1,600, the stock broke out on Friday, showing renewed momentum. A strong pullback from Ichimoku supports invites some fresh buying.
• PAYTM: Buy at ₹940, stop ₹900 target ₹1,015
The financial services sector is once again attracting attention, and this counter has outperformed the broader sector over the past few weeks. There was some consolidation at the start of the month before the stock moved higher with help at TS and KS levels.
Also Read: Sebi norms may have partly fuelled recent FPI selloff
Raja Venkatraman is co-founder of 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.
