Domestic equity carried their weakness on Monday from the previous weak. At 10:40 am, the Nifty50 was down by almost 361 points and was trading at 16,623.90. Meanwhile, the BSE Sensex was also lower by almost 1200 points around this time and was trading at 55,821.80. The weakness was on the back of omicron fear and weak global cues on Monday. At the end of previous weak, Nifty50 already fell by about 9 per cent from the recent high of 18604 recorded in October 2021 amid rising concerns of new COVID variant, US Fed tightening, strengthening of the US Dollar index, relentless selling by foreign investors and high valuations.

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What must the investors do now to still make the most of the current market situation. We have collated a list of 8 trading ideas from various experts that could give 5-12% return in the next 3-4 weeks. But, first a recap of what happened during the previous week.

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The Nifty50 closed below its crucial psychological support placed at 17000 for the week ended 17 December. The index is now trading below its crucial 30, 50 and 100-Day’s Moving Average.

Despite the recent selloff in equity markets post October, both Sensex, and Nifty50 are likely to close the year 2021 with double digit gains.

After a 3 per cent fall in benchmark indices for the week ended December 17, experts are of the view that there is room for further consolidation and investors should remain stock specific.

Barring IT all other sectors succumbed to the selling pressure in the week gone by. The broader market also witnessed selling pressure. The S&P BSE Mid-cap index fell 2.4 per cent, and the S&P BSE Small-cap index was down 2.1 per cent in a week.

“Traders are advised to stay light on positions and even if the market attempts to recover, one should avoid aggressive longs till the time 17700 is not surpassed. Before this, 17100 - 17200 are to be considered as immediate hurdles,” Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd, said.

“The next couple of sessions would be quite crucial and if any recovery has to happen, this is the best possible zone from where it should happen. All eyes on banking space because the way it’s placed, it is likely to dictate the short term trend,” he said.

We have collated a list of 8 trading ideas from various experts that could give 5-12% return in the next 3-4 weeks:

Expert: Rajesh Palviya, head-technicals and derivatives at Axis Securities

Infosys: Buy| LTP: Rs 1821| Target Rs 1925| Stop Loss Rs 1720| Upside 5%

This stock has decisively broken out its five months consolidation formation on a closing basis on the weekly chart. This breakout is accompanied by huge volumes indicating increased participation in the rally. 

The stock was observed from its 20, 50, and 100-Days SMA support zone which reconfirm bullish sentiments.

Both the daily and weekly strength indicators RSI (Relative Strength Index) and the momentum indicator Stochastic are in a bullish mode which supports rising strength as well as momentum.

The above analysis indicates an upside of 1885-1925 levels. The holding period is 3 to 4 weeks.

IndusInd Bank: Sell| LTP: Rs 883| Target Rs 850-825| Stop Loss: Rs 932| Downside 6%

On the daily chart, the stock has witnessed a sharp selloff from its “multiple resistance zone” of 970 levels.

Rising volumes at the breakout zone imply increased participation. On the weekly chart, the stock is in a downtrend forming a series of lower tops and bottoms.

The stock is sustaining below its 20, 50, and 100 as well 200 Day SMA which reconfirms bearish sentiments ahead. The daily and weekly strength indicator RSI is in bearish mode along with negative crossover which supports rising weakness.

The above analysis indicates a downside of 850-825 levels.

HDFC Ltd: Sell| LTP Rs 2617| Target Rs 2560-2500| Stop Loss Rs 2715| Downside 4%

Since Nov’21, the stock is in a downtrend, forming lower tops and bottoms. With the current close, the stock has violated its five months “multiple support zone” (2670) on a closing basis

Rising volumes at the breakdown zone imply increased participation. The stock is sustaining below its 20, 50 and 100 as well 200 Day SMA which reconfirms bearish sentiments ahead.

The daily and weekly strength indicator RSI is in bearish mode along with negative crossover which supports rising weakness. The above analysis indicates a downside of 2560-2500 levels.

Brokerage: SMC Global Securities Ltd

HCL Technologies Ltd: Buy| LTP: Rs 1171| Target Rs 1310| Stop Loss Rs 1100| Upside 12%

The stock made a 52-week low at Rs 850.00 on 21st December 2020 and a 52-week high of Rs. 1377.75 on 24th September 2021.

The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1067.02.

Short-term, medium-term, and long-term bias is looking positive for the stock as it is trading in an uptrend since July 2020. Thus, the stock is forming an “Inverse Head and Shoulder” pattern on daily charts which is bullish in nature.

Last week, stock tried to give the neckline breakout of the pattern but couldn’t hold the high due to correction in broader indices but still has managed to close in positive territory with positive bias so buying momentum may continue for coming days.

Therefore, one can buy in the range of 1160-1164 levels for the upside target of 1280-1310 levels with a stop loss below 1100 levels.

Power Grid Corporation: Buy| LTP Rs 209| Target Rs 230| Stop Loss Rs 190| Upside 10%

The stock made a 52-week low of Rs 136.88 on 01st February, 2021 and a 52-week high of Rs. 216.45 on 03rd December, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 176.41.

As we can see on charts that stock is trading in higher highs and higher lows, forming sort of “Rising Wedge” pattern on weekly charts which is bullish in nature.

Despite the fall in the broader indices, the stock continued to trade in an uptrend along with high volumes which indicate buying is aggressive for the stock.

On the front of the technical indicator such as RSI and MACD, they are suggesting buying for the stock. Therefore, one can buy in the range of 204-206 levels for the upside target of 225-230 levels with a stop loss below 190 levels

Expert: Pushkaraj Sham Kanitkar, VP (Equities) at GEPL Capital

Tech Mahindra: Buy| LTP: Rs 1642| Target Rs 1750| Stop Loss: Rs 1530| Upside 6%

The view on IT sector is positive. Tech Mahindra is breaking out from a 2-month consolidation zone. The stock has a potential to move towards 1750 followed by 1860 in the next 3-4 weeks.

The view on Tech Mahindra will be neglected if the stock fails to hold on to Rs 1,530 levels on a closing basis.

TCS: Buy| LTP Rs 3587| Target Rs 3880-4000| Stop Loss: Rs 3450| Upside 8%

TCS took support at 3400-3450 demand zone and broke out of a double-bottom formation since then the prices are consolidating in a narrow range.

A break above 3560 can take prices towards 3880 followed by 4000 levels. The view will be neglected if prices break below 3450 on a daily closing basis.

Vardhman Textiles: Buy| LTP Rs 2257| Target Rs 2480| Stop Loss Rs 2150| Upside 10%

Vardhman Textiles has broken out from an Ascending Triangle pattern with an increase in volume activity.

As long as prices sustain above 2150 levels we can expect the stock to move towards 2480 followed by 2600 levels.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)