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The last week ended with restricted losses of nearly seven-tenths of a percent from the previous weekly close on the Nifty50.
The Nifty slipped and closed below the 20-day EMA (exponential moving average) for the first time since March 31 and we are placed slightly below this. So, till the time the Nifty does not surpass 19,550 – 19,600 level on a closing basis, one should avoid being complacent and, ideally, it’s better to avoid aggressive trades.
In case of further global aberration, the Nifty may go back to challenge the 19,400 – 19,300 levels and a move below this would reinforce the selling pressure to slide towards the next important cluster of 19,000 – 18,800.
As far as optimistic scenario is concerned, a move beyond 19,600 is crucial with global factors of volatility needing to subside completely.
At the end of the week, the market has left us with some ambiguity and, hence, it’s advisable to take one step at a time.
Here are two buy calls for short term:
Jubilant Foodworks: Buy | LTP: Rs 517.15 | Stop-Loss: Rs 491 | Target: Rs 545 | Return: 5.4 percent
The stock has seen a strong price-volume spurt in the last trading session, leading to a convincing close above the 200-day SMA (simple moving average) after almost nine months. The recent development construes a positive chart structure with a slightly broader perspective, as it surpassed the previous swing highs in a decisive manner.
Also, the primary technical indicators are very much in line with the buoyant setup, and we expect the momentum to continue in the near period.
Since price have moved sharply on Friday, we recommend buying around Rs 510 for a trading target of Rs 545. The stop-loss can be placed at Rs 491.
IDBI Bank: Buy | LTP: Rs 63.90 | Stop-Loss: Rs 59 | Target: Rs 69 | Return: 8 percent
This mid-size banking name has been a steady mover of late and has been unbothered by the recent development in the banking space. In the week gone by, prices not only challenged its multi-month highs but also managed to surpass them with an ease.
On the weekly chart, the breakout is clearly visible with gargantuan volumes, indicating immense buying interest in the counter. Traders can look to buy around Rs 62 for a near term target of Rs 69. The stop-loss can be placed at Rs 59.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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