Much on the expected lines, the markets showed negative returns last week. Also the contract expiry, the mixed earnings outlook and guidance retained the volatile flavor. The markets (and especially the banking sector) seem to be factoring in the proposed rate hikes by the RBI on the 3rd May.
While a 25bps rate hike seems to be factored in, a 50bps should not be a surprise given the inflation factor not giving any indications of declining.
Another important factor is the crude which is climbing new highs daily which worries about the inflation even more.
Technically the ‘sensex’ is near its 200 DMA support in the triangular formation as seen in the chart, more downside from here could drag down it all way up to 18600 where the rally begun from in the end of March.
The upside however should be capped up to 19500-19600 as there is a potential resistance zone there.
Therefore a breakout from this zone should be the trend setter. Until then, it’s the individual picks that would matter.
A quick stock round up
Stocks like Sutlej, Pidilite, have achieved targets last week and hence must be exited.
Lupin, Sun pharma, Hindalco, HUL etc recommended earlier have shown nice breakouts and can be bought at every dip before their targets are achieved.
Sun Pharma Target is to be upgraded from 475 to 490
Lupin target to be extended to 475.
HUL survived a stoploss and has bounced back to the resistance levels. Fresh buys for it only above 190 with the target mentioned previously.
(Stoplosses must be trailed subsequently)
BPCL and IOCL look good on the charts and positions are open in them.
Stocks bought from the earnings perspective like Ambuja Cements, Wipro,
Kotak Mahindra Bank, Indiabulls Fin Serv, Reliance Comm, etc have hit stoplosses and closed with minor losses. The stops were recommended closer as the speculation was more in such.
Orchid Pharma (last week) failed to make a breakout of the recommended price and has returned back into the negative zone and hence is discarded.
New stock J
Though the markets are negatively biased, there are not many stocks to buy.
GVK Power and Infra: A rectangle is forming in the charts. The bounce back from the bottoms may provide a good trade in the channel (and subsequently on the breakout).
Buy ONLY after the prices close above the specified prices as there are many stocks that were poised to breakout earlier the last month but DIDN’T.
No comments:
Post a Comment