NANDISH SHAH, HDFC Securities
Yesterday i.e. on July 19, there was a huge fall in Nifty. Weakness in Asian and American markets also affected Indian markets. However, with a recovery of 50 points from intraday low, Nifty closed 175 points down at 15,752.
This was the highest percentage fall in the Nifty since April 30, 2021. In the last 2 months, Nifty has made several bottoms in the range of 15,500 and 15,700. Looking at the derivatives, we have seen put writing at 15,500 level which is an indication that this level will act as support for Nifty going forward. However, the Nifty has seen a huge decline. But veterans say that as long as it stays above 15,500 it will remain in an uptrend.
A close below 15,500 will only confirm a short term trend reversal. Traders are advised to maintain a bullish outlook and take long positions in Nifty with a stop loss of 15,500 on any downside. On the upside, immediate resistance is visible for Nifty at 15,882 and 15,860.
Breakout is being seen in Nifty Small Cap Index on Weekly and Monthly charts. It is expected that the good performance of small and medium stocks will continue in the coming weeks as well. Keeping this in mind, traders would be advised to focus on mid and small caps instead of large caps for higher returns.
Today’s three calls in which you can see an upside of 16 percent in 2-3 weeks
Radico Khaitan | LTP: Rs 822 | Buying advice is given in this stock with a stop loss of Rs 775 for a target of Rs 950. An upside of 16% can be seen in this stock in 2-3 weeks.
Ingersoll Rand India | LTP: Rs 1,032 | Buying advice is given in this stock with a stop loss of Rs 965 for a target of Rs 1,150. An upside of 11% can be seen in this stock in 2-3 weeks.
Eris Lifesciences | LTP: Rs 760 | Buying advice is given in this stock with a stop loss of Rs 730 for a target of Rs 830. An upside of 9% can be seen in this stock in 2-3 weeks.
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