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Nifty eyeing 14,200; broader markets to outrun benchmarks: Sameet Chavan

On January 2, the buying momentum accelerated in Tinplate stock in latter half, which resulted in a strong breakout from multiple hurdles.
The mankind had to witness a lot of unprecedented things in the year gone by. Initially it was very difficult to adjust with the forceful changes in our lives; but we always try to make our own ways in all the difficulties and this is exactly what has been proven all these months. The year 2020 was full of shocks and surprises; but as we always say "All's well that ends well". We not only stabilized from the March chaos but also managed to give a stupendous V-shaped recovery in the last nine months to even surpass pre-Covid-19 highs with some authority.

During the concluding week of the calendar year, Nifty added another couple of per cent to Bulls' kitty and importantly reached yet another milestone of 14,000. Now, there are lots of expectations built as we step into the New Year. With a broader view, there is no brainer, we are heading for much bigger levels from here on; but it would be unfair to expect the similar kind of linear move that we have been enjoying since early November. In between, markets are likely to give some corrections, which would be a healthy sign. For the coming week, we expect the Nifty to slowly and gradually head towards 14,150-14,200; whereas the key support zone is placed at 13,950 - 13,850 levels.

Although there was some muted action seen in key indices during the previous week, the broader market just took off in the last couple of days. Hence, the real action lies in the broader end of the spectrum, which may continue to provide better trading opportunities. Traders are advised to keep focusing on thematic bets and should ideally avoid aggressive bets in indices.

Stock recommendations:


View – Bullish

Last Close – Rs 167

This 'TATA' group company has been quiet since last three months after a spectacular move from March lows. On January 2, the buying momentum accelerated in the stock in latter half, which resulted in a strong breakout from multiple hurdles. The volumes in this move were phenomenal -- nearly six times of its average daily volumes -- providing credence to the move. With this, the weekly and monthly time frame charts looks extremely promising and hence, we recommend going long on a decline towards 162 for a target of Rs192 in coming weeks. The stop loss can be placed at Rs 150.


View  – Bearish

Last Close – Rs 38.70

This one of the 'Navratna' companies has been a sheer underperformer throughout this decade. From its all-time high levels of over 300, the stock prices kept sinking after 2010. Now, we have been observing some interesting price and volume activity in this stock since last 3–4 months. Although, it's still difficult to say whether the stock has enough potential to reach even half way of its record highs, the possibility of some decent move in the coming weeks cannot be ruled out. On Friday, the stock price had a huge price upsurge along with sizable volumes to confirm a 'Bullish Cup and Handle' pattern. Traders are advised to use any dip to go long for targets of Rs.42-45 in coming weeks. The strict stop loss can be placed at Rs.35.90. 


Disclaimer: Sameet Chavan is Chief Analyst- Technical & Derivatives at Angel Broking. The analyst may have positions in one or more stocks. Views are personal.

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