Skip to main content

Banks, NBFCs, consumption likely to outperform: 3 stocks with 8-15% return in short term


An index is likely to remain sideways in the range of 10,880 to 10,680 in the forthcoming trading week with slightly negative bias.

Manish Srivastava

It might give an impression that bulls have taken the rally forward in Nifty50, if we look at the prices on a weekly closing basis but things are not as embellished as it is appearing. Even though the gain of more than 150 points has been registered in the week gone by but, the behaviour of bulls during the last trading week is raising a question mark on the strength of an ongoing rally. Gap up opening on July 6 could not attract the follow up buying and prices remained sideways throughout the week just below its 200-day simple moving average, which is placed at 10,876. The inside day pattern on a daily time frame which was followed by "Doji" on Friday's trading session and indecisive small body candle in a weekly time frame suggesting that rally is losing steam and a phase of distribution might start in coming days.

An index is likely to remain sideways in the range of 10,880 to 10,680 in the forthcoming trading week with slightly negative bias. Breaking below the lower range i.e. 10,680 could result in profit booking and slide in such case can be expected till 10,528 and even till 20 DMA which is placed at 10,428. Having a glance with the birds-eye view and considering the advanced Fibonacci system, Nifty50 is trading with "justified good above series" and rallied after trading the "master high" of 10,328.50 formed on June 8. The same master high will now act as strong support in coming days on the way down and until the prices are trading above it, the medium-term trend will remain up but short term volatility will not be ruled out.

Bank Nifty on the other hand looks more lucrative and could outperform Nifty50 in the coming days. When Nifty is trading near its 200 DMA, the Bank Nifty is still trading far below its 200 DMA which is placed at 26,340 indicating that it has more headroom for rally. The trend reversal buying is emerging in many banking stocks and range breakout along with positive moving average crossover can be seen in the banking index itself.

Read full article here -  Click Here


Comments

Post a Comment

Popular posts from this blog

Reliance Jio Q3 results: Profit grows to Rs 3,489 crore; ARPU rises to Rs 151

  The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. Reliance Jio, the telecommunications arm of Jio Platforms, on January 22 posted a net profit of Rs 3,489 crore for the quarter ended December 31, 2020. The profit was higher than the street expectations as analysts in a CNBC-TV18 poll had estimated the number at Rs 3,200 crore. Jio's net profit grew 15.5 percent QoQ as in the September quarter of FY21, its profit was Rs 3,020 crore. The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. A CNBC-TV18 poll had estimated ARPU at Rs 148.2. Revenue, including access revenues for the quarter, was Rs 22,858 crore ($3.1 billion), up 5.3 percent QoQ. A CNBC-TV18 poll had estimated revenue to the tune of Rs 18,165 crore. EBITDA for the quarter stood at Rs 8,483 crore ...
Post a Comment
Read more

Futures Trade | A bullish breakout of a flag pattern in HDFC

HDFC is moving in an uptrend with a minor corrective decline. The range is classified as a flag and a breakout of falling minor trendline confirms a possible upside. HDFC is moving in an uptrend with a minor corrective decline from Nov 20 highs. The decline is on lower, contracting volumes and suggests a correction within an ongoing trend. The range-bound action can also be classified as a flag as it is on coming off a sharp rally. A breakout of falling minor trendline confirms a possible upside. Buy around Rs 2300-2310. Keep a stop below Rs 2250 and hold for a target of Rs 2400 and above that to Rs 2450.
Post a Comment
Read more

Taking Stock | Profit-booking pulls Nifty below 14,450; Sensex drops 549 points

  All the sectoral indices ended in the red with IT and PSU bank indices falling 2 percent each. The market remained under pressure on January 15 on the back of profit-booking across sectors amid weak global cues. At close, the Sensex was down 549.49 points or 1.11% at 49,034.67, and Nifty was down 161.90 points or 1.11% at 14,433.70. "The market witnessed profit-booking and following global trends. Nifty continues to resist 14,600 and has taken a dip towards 14,360. If the market closes below 14,380 levels, we might see a correction till the levels of 14,180-14,200. Momentum indicators like RSI, MACD are indicating a small correction in the markets," said Ashis Biswas, Head of Research at CapitalVia Global Research. All the sectoral indices ended in the red with IT and PSU bank falling 2 percent each. Broader markets performed in line with the main indices with BSE Midcap and Smallcap indices falling 1 percent each. Tech Mahindra, GAIL, HCL Tech, Wipro and ONGC...
Post a Comment
Read more