Given the small premium of 46-50, that the 10,850-CE governs, it would be worthwhile to buy it with possible targets around Rs 150-200 ahead of expiry.
Given the small premium of 46-50, that the 10,850-CE governs, it would be worthwhile to buy it with possible targets around Rs 150-200 ahead of expiry.
The last hour has seen market claw back the lost ground, in fact by closing up by around 5 point.
The major momentum that the Nifty is deriving is coming out of strength in certain heavyweights. While earlier it was banks, and now the momentum has shifted to IT pack and Reliance Industries which have come to the rescue.
We had categorically stated in our earlier outlook as well, that the midcap-smallcap are a strict no-no, given the intrinsic weakness in individual stocks and in indices as a whole.
We still stand by our hypothesis that the broader indices may further correct by around 5-7 percent. Hence, one could be looking at opportunities for exiting these scrips on any fruitful rise.
While in the last week, the Nifty50 candle showed upper shadow (Corrected from 10,893 to 10,817), the current week is showing a lower shadow (bounced from 10,701 to 10,821).
These shadows in a way define the immediate barriers placed between levels of 10,701-10,893. The monthly candle too is currently seen forming an “Inside Month”, which would mean that one needs to wait for the market to move past the extremities for a clear direction.
The market has remained in a sideways tranche for almost 3-4 weeks now, which indicates to a compression of the spring. The fact that Nifty is seeing support at lower levels and the strength amongst the heavyweights brings us to believe that market might make an attempt to take on lifetime highs over the next week or 10 days.
Given the small premium of Rs 46-50, that the 10,850-CE governs, it would be worthwhile to buy it with possible targets around Rs 150-200 (Around 11,000 on the Nifty).
As mentioned earlier we would prefer going with the frontliners and our picks are:
Cipla: Buy| CMP: Rs 615| Target: Rs 660| Stop loss: Rs 595| Return 7%
Kotak Mahindra Bank: Buy| CMP: Rs 1,320| Target: Rs 1,420| Stop loss: Rs 1,290| Return 8%
Asian Paints: Buy| CMP: Rs 1,268| Target: Rs 1,330| Stop loss: Rs 1,221| Return 6%
MORE WILL UPDATE SOON!!
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