Nifty 50 on 12 December: Recap
On 12 December, Thursday, the equity market benchmark indices, the Sensex and the Nifty, closed lower due to heavy selling in major stocks like Reliance Industries, L&T, and Hindustan Unilever. This cautionary move by investors was in anticipation of the upcoming inflation data announcement. We had mentioned that the current phase of the market is a testing one and it proved to be the same as the trends remained fragile. The last few days have been pretty docile, with some ranging action indicating some pressure on the way down.
Indian stock markets: Way forward
CNXIT stretched further higher while the Nifty and the Bank Nifty remained suppressed, leading to some stress across the market. As the way ahead seems quite murky, we now need to rework the way forward. The range-bound action for the last six trading sessions has kept the bias under the hood. While global trends are showing some promise, there is no clear direction on the domestic front. The resistances highlighted on Daily chart around 24,840, forcing the bullish camp to take a breather. The support highlighted earlier around 24,600 will be under test as we end the range-bound week. The Max Pain area is at 24,550 as trends try to stabilize, indicating that the supports at the current juncture could play a crucial role.
Three stocks to buy, recommended by NeoTrader’s Raja Venkatraman:
• CENTENKA: Buy at ₹713, stop ₹690, target ₹780
With chemical stocks showing a rebound across the board this counter too displayed some revival. As trends are showing some promise to the upside we can consider that the bias in the market can help. One can look to participate as trends have turned positive once again.
• EIDPARRY: Buy at ₹942, stop ₹890, target ₹1,040
EIDPARRY, a dominant player in insurance, has survived the market collapse and revived smartly from lower levels. After the declines over the last three months, the prices have found some good support at the Ichimoku clouds, the trends have shown some resumption of upward bias. One can consider going long.
• ZOTA: Buy at ₹663, stop ₹648 target ₹730
ZOTA, a mid-cap pharma company, showed some sharp recovery in the last few days. As trends are indicating a revival with a shift in the trends beyond value area resistance around 640, we can consider some trended action in the coming days. Look to initiate a buy opportunity.
Raja Venkatraman is co-founder, NeoTrader.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.