Podcast | Stock picks of the day: 'Nifty may consolidate, prefer hedged positions'

We feel Nifty may consolidate further in the near future within 11,500-11,800 levels prior to next directional move.


Markets consolidated further last week and settled almost flat. Participants were in a cautious mood from the beginning citing mixed cues. Weak global cues combined with not so encouraging local news.

Besides, caution ahead of the earnings season and news flow around the first phase of general elections capped the upside. Most sectoral indices traded in sync with the benchmark index and failed to show any major change.

However, stock-specific movement kept participants busy till the end. Finally, the benchmark index, Nifty, at 11,643.43; down by 0.19 percent for the week ended April 12.

This week is a holiday-shortened one and participants will be largely focusing on earning announcements and global markets for cues.

Among the prominent names, Reliance Industries, Wipro, Mindtree, and RBL Bank will announce their results during the week along with others.

We feel Nifty may consolidate further in the near future within 11,500-11,800 levels prior to next directional move. However, volatility will remain high on the stock-specific front due to prevailing earnings season.

Traders should plan their trades accordingly and prefer hedged positions. Besides, they should keep a close eye on global developments and on-going general elections.

L&T Finance Holdings: Buy| Target: Rs 162| Stop-Loss: Rs 146|Upside 7.2%

L&T Finance Holding rebounded sharply after retesting its crucial support zone around Rs 120 and reached closer to previous high around Rs 155 in no time.

It has retraced marginally in the last two weeks and consolidating around the support zone of 200-EMA on the daily chart. On Monday, i.e. on April 15, it has surged strongly with decent volume and looks upbeat for a fresh up move.

We advise initiating fresh longs within Rs 149-151. It closed at Rs 150.85 on April 15, 2019.

Century Textiles & Industries: Buy| Target: Rs 975| Stop-Loss: Rs 900| Return 5.4%

Century Textiles has been gradually inching higher after retesting its major support zone around Rs 720 in February 2019. It is trading on the verge of a breakout from the bullish reversal pattern and is likely to see a strong surge in the near future. Indications from the cement pack are also in sync.

We advise creating fresh longs in the given range Rs 920-925. It closed at Rs 924.80 on April 15, 2019.

Zee Entertainment Enterprises: Sell April Futures| Target: Rs 395|Stop-Loss: Rs 434 | Downside 5.9%

We have been witnessing a mixed trend in the media space and Zee has been trading with negative bias for the last ten months now.

Though it had a sharp rebound in between but couldn’t surpass the hurdle of long term averages and resumed the decline. It’s currently hovering in a range, offering fresh shorting opportunity.

We suggest using any technical bounce to go short in the given range of Rs 420-424. It closed at Rs 416.65 on April 15, 2019.

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