Best strategy is to buy on dips
- ADANIENT - Above 1200 with a target of 1250 and Stop loss of 1150. It is trading in a upward trending channel and on the verge of a breakout.
- CADILAHC - Above 532 with a target of 555 and Stop loss of 512. It has a support of 8 and 40 DMA.
- AARTIIND - Above 1440 with a target of 1480 and Stop loss of 1410. It is an upward trending channel and on the verge of a breakout.
- LUPIN - Above 1070 with a target of 1100 and Stop loss of 1045. It has a support of 8 EMA.
- ACC - Above 1890 with a target of 1915 and Stop loss of 1870. It has reversed from the support of 8 EMA.
Mumbai: On a weekly basis, Pharmaceuticals, FMCG and Metals performed well, indicating a defensive outlook from domestic players and a move in metal stocks due to the exceptional strength in the global metal market.
Looking at the weekly charts of Sensex and Bank-Nifty, we can conclude that the market has refused to decline despite a strong hammering on the first day of the week, however, on a daily basis, the market failed to hold opening gains. In short, market sentiment is becoming "cautiously optimistic" and the best strategy is to "buy on dips".
In the coming week, the market should trade between the trading range of 48,550 to 50,100. Above the levels of 50,100, the short-covering should come that may lift the market to 50,500 or 51,000 levels.
Next week, HDFC Bank's quarterly numbers will determine the Bank-Nifty trend. They should be graded between the 32600 and 31400 levels.
There is an opportunity to go above the level of 33300 to 34000. On the downside, the Sensex should not break the 47,690 levels, otherwise the market would collapse to the 47,000 levels in the short term.
During the week, FIIs were selling for Rs1,500 crore due to the exceptional weakness of the Indian rupee.
"We expect value-buying in shares of Financials and Commodities should emerge in the coming weeks," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.