"This week, we expect the market to remain rangebound between 10,925 on the upside and 10,720 on the downside," Dinesh Rohira of 5nance.com said
In the week gone by, the Indian equity market sustained its performance on a weekly basis, despite taking a breather after the Federal Open Market Committee's rate hike on Thursday.
The Nifty traded in a positive trajectory in four out of the last five sessions. It came under selling pressure during early trade on Friday to hit a low of 10,755, but managed to recoup its losses towards the end of session to close above 10,800 levels.
The index touched an intraday high of 10,834 and closed on a flat note at 10,817 levels, a gain of about 0.46 percent on a weekly basis.
After taking a short breather on Thursday to form a Hammer like candlestick pattern, the index didn’t see a significant pattern formation on a weekly basis, apart from the inverted pattern.
The weekly relative strength index (RSI) stood at 61, indicating a positive breakout from the pattern formation, while the weekly moving average convergence divergence continues to indicate a bullish trend as price trades above the signal line.
This week, lack of major domestic triggers and fears of an escalation in the trade war between US and China is likely to weigh on sentiment. This tension will certainly keep the index volatile despite positive biases on the domestic front.
We advise investors to remain cautious with a sector or stock specific approach and maintain a strict stop-loss. This week, we expect the market to remain rangebound between 10,925 on the upside and 10,720 on the downside.
Nava Bharat traded in a positive trajectory on its weekly price chart post its correction from its 52-week high of Rs 184 levels. It took a strong support at Rs 120 levels.
Despite a muted market breath, the scrip witnessed a strong momentum as it managed to break out from its multi-long moving average level of 200-50-days.
It also witnessed a substantial volume breakout on the weekly chart which indicates an upward trend. On the weekly price chart, the scrip registered a solid bullish candlestick pattern indicating a sustained rally post current breakout from crucial levels.
Further, the weekly RSI is placed at 58 which suggests a buying regime at a current level along with positive cues from MACD suggesting an upward shift.
The stock is likely to face resistance around Rs 168 while support level is placed at Rs 288. We have a buy recommendation for Nava Bharat Ventures which is currently trading at Rs 145.60
Hindustan National Glass & Industries Ltd: Buy| Target: Rs 113 | Stop-loss: Rs 95 | Return: 8%
After witnessing a sharp correction from Rs 167 odd levels in the past few months, Hind Nat Glass witnessed a reversal trend in the recent period. A strong support is placed at 78-76 levels.
The scrip registered a strong pullback throughout the session as it managed to decisively break out from its crucial moving average level of Rs 94 levels on closing basis coupled with positive volume growth above average.
The scrip gained about 12 percent on an intraday basis and about 32 percent on the weekly basis. The positive breakout on the weekly basis aided the scrip to form a long-solid bullish candlestick pattern indicating a strong reversal trend for a couple of sessions.
The weekly RSI trend registered an upward momentum at Rs 67 suggesting a buying regime along with MACD moving near bullish crossover.
The scrip has a support placed at Rs 78 levels and resistance level at Rs 128. We have a buy recommendation for Hindustan Nat Glass which is currently trading at Rs 104.90
Gruh Finance Ltd: Sell Target: Rs 309 | Stop-loss: Rs 335 | Return 4%
Gruh Finance witnessed a sharp correction on the weekly price chart despite making a decent move on the upside. The scrip came under pressure last week as it lost about 11 percent on weekly basis and slipped below the short-term moving average level of Rs 330.
It also witnessed a negative volume support indicating a sustained pressure on short-term basis.
The scrip formed a solid bearish candlestick pattern on its weekly price chart after breaching below important level indicating a sustained pressure.
Further, the secondary momentum trend continued to indicate negative signal with RSI slipping below at 39 coupled with the bearish outlook from MACD trend.
The scrip is facing a resistance at Rs 337 levels and crucial support from 100-days EMA is placed at Rs 305 levels. We have a SELL recommendation for Infibeam which is currently trading at Rs. 322.45.
Disclaimer: The author is Founder & CEO, 5nance.com. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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