For this week, all eyes would be on global markets and at our end, 9,200 is the level to watch out for. Also, Any rally which is mainly driven by the banking space is considered to be a robust one and hence, if we manage to reclaim 9,200 along with the considerably higher contribution from the banking conglomerates (Bank Nifty hourly chart depicts a positive divergence in RSI-Smoothened), we would see good relief move in the concluding week of the May month. On the flipside, 8,900 – 8,800 would be seen as crucial supports for the market.
NSE Scrip Code – CIPLA
The entire PHARMA space has been the flavor in last couple of months. Most of the counters have given a stupendous rally of more than 30-40% in such a short span. Last month we had highlighted the ‘Nifty Pharma’ confirming a breakout from multi-year ‘Downward Sloping Channel’ and although, this month mostly has been the consolidation phase, we expect the stocks to resume their upward trajectory now. ‘CIPLA’ went into a consolidation mode after a stellar move and since last couple of days, it has regained momentum. In this process, the daily chart now exhibits a breakout from the ‘Bullish Flag’ pattern and considering the overall placement of momentum oscillators, the stock is likely to do well in next few days. We recommend this stock for a target of Rs.688 in coming weeks. Traders can keep their stop losses at Rs.608.
NSE Scrip Code – INDIAMART
This e-commerce company has been quiet since last three months and it is important to note that, this stock refused to correct severely in the March month mayhem that the broader markets witnessed. In fact, after correcting a bit, the stock prices started gradually moving northwards and, in the process, has confirmed a breakout from the ‘Bullish Cup and Handle’ pattern. The said breakout is supported by higher volumes and we expect the outperformance to continue. Hence, we recommend a buy at current levels for a target of Rs.2720 over the next 14 sessions. The stop loss should be fixed at Rs.2395.
Disclaimer: Sameet Chavan is Chief Analyst- Technical & Derivatives at Angel Broking. The author may have positions in one or all of the above mentioned stocks. Views are his own.