Pharma and metal stocks can comeback amidst the upsurge in the stock market, bet on these 2 stocks

The second wave of Corona virus continues to cause panic in the stock market and this volatility is likely to continue for the next week as well. The BSE Sensex remained flat on the last trading day of the week on Friday and closed at 48,732.55 points with a slight gain of 41.75 points. At the same time, the NSE Nifty closed at 14,677.80 points with a slight drop of 18.70 points.

Nifty and Sensex declined by about 1% this week. Srikanth Chauhan, executive vice-president, technical research, brokerage and investment firm Kotak Securities, said the stock market witnessed profit-booking and sell-off, mainly seen in pharma, IT and, to a lesser extent, metal stocks.

Shrikant Chauhan said that the range market activity has been observed in the stock market this week. Not only the Indian market, the global markets are also finding it difficult to maintain the higher level. Given the way the markets have fallen in the last few days, it is difficult for the market to touch its previous high level.

He said that for the last 2 months Nifty has been struggling to reach above 15,000 levels. At the same time, the downside is getting good support at the market level of 14,400 to 14,500. He said that in the coming days we can see the sideway activity in the stock market. Shrikant Chauhan said that even if there is more selling in the market, it should not fall below 14,400.

But if there is more correction in the market, then we should include in our trading portfolio of Nifty and Bank Nifty. He said that stock-specific action is showing in the market. This is the reason that companies like Reliance Industries, ITC and L&T, which have not performed well for a year and a half, are now performing well.

Srikanth Chauhan said that even though metal and pharma stocks have lost their significant levels in the last few sessions, these stocks may comeback next week. In such a situation, Srikanth Chauhan has suggested to investors to place bets on Lupine Pharma (Lupine) and JSW Steel. They say that these two stocks have the power to sell.

Lupine Pharma

Srikkanth Chauhan saw tremendous profit booking this week when shares of Lupine Pharma reached the level of Rs 1230-1240. He advised to buy Lupine Pharma’s stock between Rs 1175 to Rs 1180 and keep its stop loss at Rs 1140. He advised Lupine Pharma to buy and hold shares keeping in mind the target of Rs 1250 to Rs 1270. Shares of the company closed 2.95% down at Rs.1176.45 on Friday.

JSW Steel

Srikanth Chauhan advised investors to buy JSW Steel shares between Rs 707 and Rs 710 keeping the target price of Rs 740. Also asked to fix its stop loss at Rs 690. Shares of the company closed down 0.99% at Rs 707.20 on Friday.

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