Buy or sell stocks: Last week we saw a positive week for the Indian equity market. Nifty tested 7 week high of 17842 and Banknifty tested 11 week high of 42196. As expected, we also saw fresh buying activity by FPIs last week. The Nifty closed at 17,828 with a gain of 1.30%. Bank Nifty closed at 42,132 with a gain of 2.66%.
Technically the trend of Nifty and Bank Nifty is positive as it formed higher top higher bottom formations on the charts. Substantial volume is also indicating fresh buying interest.
Nifty has immediate support near 17600 level and then 17400 level, while resistance lies near 18000 level and 18250 level. Banknifty has immediate support near 41400 levels and then 40650 levels, while resistance lies near 42800 levels and then 43500 levels. The market may also face some hurdles in the resistance area where we can see profit booking from the resistance area as well. The trend of Nifty and BankNifty is positive, and it is advised to buy on dips in Nifty and BankNifty.
On stocks to buy in the next week, Anuj Gupta of IIFL Securities recommends the following 5 stocks:
Coal India: Buy on CMP, Target 250, stop loss 212;
Recover from retracement zone… Short covering and fresh buying seen.
Tata Steel: Buy on CMP, Target 115, Stop Loss 102
Double bottom near 100 level as it is a strong support level… Benefiting from increase in volumes and higher metal prices.
state Bank of India: Buy on CMP, Target 555 stop loss 518
Third consecutive positive week.. Strong formation.. 3 White Soldiers candlestick pattern signals optimism. High top high bottom formation.
ONGC: Buy on CMP, Target 180, stop loss 146
Higher Top Higher Bottom formation..Sufficient Volume…Taking positive signal from higher crude oil prices..Trend line breakout..Breakout level was 155,and now trading above it.
power grid: Buy on CMP, Target 250, stop loss 223
Trading above 4 week high… Strong breakout on weekly chart… Substantial volume.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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