We might see the index oscillating in a broader range in following sessions. Traders should focus more on the risk management aspects as volatility will be high across the board
Markets managed to settle with decent gains last week amid mixed cues. Weak IIP data and news of escalation in US-China trade war dented the sentiment in the beginning. It oscillated in a range most of the week, tracking mixed earnings announcement and global cues. Besides, anxiety ahead of the general elections results also restricted the move.
Sharp recovery in select index majors on May 17 helped the benchmark to end with respectable gains while the broader indices closed lower. Among the benchmark indices, Nifty settled at 11,407.15, up by 1.14 percent.
This week is going to be a crucial one as participants will be closely watching the final outcome of the general elections on May 23. We believe a clear majority would trigger further buying else the reaction could be severe on the downside.
On the earnings front, big names like IndusInd Bank, Ashok Leyland, Tech Mahindra, Grasim Industries and JSW Steel will announce their results along with several others.
Apart from the domestic factors, the ongoing trade talks between the US and China will also be on the traders’ radar.
Nifty should sustain above 11,800 for further upmove else profit taking would resume. On the higher side, 12,000 would be the next hurdle. In case of decline, 11,500 would act as an immediate cushion. Major support exists at 11,000.
In short, we might see the index oscillating in a broader range in the following sessions. Traders should focus more on the risk management aspects as volatility will be high across the board.
Here are the top stock trading ideas that can give good returns:
Marico: Buy |Target: Rs 382 | Stop loss: Rs 350 | Return: 5.5 percent
Marico formed a fresh buying pivot on May 20, after hovering in a narrow range around its support zone of multiple moving averages on the daily chart. The chart pattern and confirmation indicators are pointing towards the possibility of fresh breakout ahead.
We advise initiating fresh long positions in Rs 360-362 zone. It closed at Rs 363.45 on May 20, 2019.
Axis Bank: Buy | Target: Rs 820 | Stop loss: Rs 760 | Return: 5.1 percent
Axis Bank has surged strongly on May 20, after testing its crucial support of 100 EMA on the daily chart and made a new record high at Rs 790.65. Considering the buoyancy of banking index combined its chart formation, we have a clear signal of steady up move ahead.
We advise creating fresh longs in the range of Rs 775-780. It closed at Rs 782.40 on May 20, 2019.
Century Textiles & Industries: Buy | Target: Rs 1,050 | Stop loss: Rs 945 | Return: 7.1 percent
Century Textiles has witnessed breakout from a consolidation range of Rs 700-950, after spending nearly nine months. All indications are in the favour of strong up move in the near future.
Traders shouldn’t miss this opportunity and initiate fresh longs in the given range of Rs 970-980. It closed at Rs 986.65 on May 20, 2019.
The author is President - Retail Distribution at Religare Broking Ltd.
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