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Investors trade with caution

No one wants to place long bets, as election season is on

Investors trade with caution

Mumbai: Firm European market cues also failed to fuel optimism, as no stoppage in foreign fund outflows and no major surprises in the ongoing earnings season prompted investors to stay guarded. Also, with election season on, no one wants to place longish bets.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said: “Investors traded with caution due to lack of fresh positive triggers and ended on a flat note with a slightly negative bias amid selective profit taking in banking and IT stocks.” In Asian trade on Wednesday, oil prices declined due to industry data indicating an accumulation of crude and fuel inventories in the US, signaling weak demand.

Shrikant Chouhan, Head Equity Research, Kotak Securities, said: “Additionally, cautious expectations regarding supply emerged ahead of an upcoming OPEC+ policy meeting next month. Gold prices in India also decreased on Wednesday, as reported by Multi Commodity Exchange (MCX).” Neel Kashkari, President of the Minneapolis Fed Bank, stated on Tuesday that it is premature to conclude that inflation has halted, and the Fed might consider reducing interest rates this year if inflationary pressures ease. The Bank of England (BoE) is scheduled to release several significant updates, including Monetary Policy, on May 9.


REC Ltd. (Buy)

CMP: 535.00 | SL: 520.00 | Target: 575.00

The stock has given a good breakout above its anchor VWAP resistance mark of 529.00 and successfully managed to close above the same. With the RSI (14) on daily charts being 65 and seeing a minor uptick, it is expected that the momentum should pick up well on the upside soon in the upcoming few trading sessions. A strict stop-loss should be kept at 520 mark for potential upside targets of 575 and above.

Zydus Life (Buy)

CMP: 1005.60 | SL: 970.00 | Target: 1050.00

The stock has touched its important anchor VWAP support mark of 975 on its daily charts. With the RSI (14) being near 57, it is expected that the stock should pick up momentum eventually over the period of time. Volumes in Wednesday’s session were nearly equivalent to its average (30) days traded volume which shows strength in the stock. We can see targets of 1050 and above coming in the stock in the next few days; a strict stop-loss can be kept at 970 marks to manage risk well.

(Source: Riyank Arora, technical analyst at Mehta Equities)

CMP (Current Market Price); SL (Stop Loss)/ All prices in Rs

Kumud Das

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