The markets opened at the day’s low and then it closed at the day’s high with hardly any volatility seen throughout the day. What do you make of this move?
So it tells us that the markets are getting ready and gearing up for a good buying pattern because today’s move was not just dependent on individual stocks but it was more focussed towards large cap names like twins, .These few stocks had been trading sideways for some time and they made a good comeback which is generally a healthy sign for the markets.
The advance-decline ratio was quite healthy. We saw the premium for the Nifty Futures coming back from discount parity towards being at a 35 points premium so that is again a healthy sign for the indices. So I believe that data points as well as the factors indicate that the 17200 or maybe 17160 to be precise could act as a good base for the index.
The fact that we have closed or are just marginally above the 17500 mark indicates that it could probably be the next pivot support for the index.
When global markets were going down we were saying India is leading the pack and is not falling as much as other markets and now that other markets have started to see a mild bit of correction, India is probably seeing a flattish up move. What do you say about this strength?
In the global equity market selloff, India was the only market or one of the only markets which remained resilient. So whenever the recovery pans out for the entire equity market across the globe India is bound to be more of an outperforming equity class and we have seen that happening over the last two months.
So I do not see this as a surprise and I think it is more of a continuation which is required now. What we need is the global push coming back so if the global markets improve further then the recovery for the markets or the rally for the markets could see more pace on the upside. But if the global markets get into a shell or may be a consolidation then we can also dilly dally into a trading range which could be much higher than the average trading range from the other equity markets.
So what are your top ideas then?
So I have a couple of buy calls again focussing on a mix of midcaps and large caps. Large cap wise UPL is a stock which I would suggest as a buy. Post the results the stock went into a correction but now I believe the stock should make a decent come back above 750 levels. So traders should look at buying the stock at a target of Rs 775 and the stop loss can be kept at Rs 735.
is also a stock that I believe will be making a very good comeback. So I would suggest traders to buy with a target of Rs 700 and the stop loss can be kept at Rs 625.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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