Ideally, the next couple of sessions would be quite crucial and probably we should be able to get an idea where market is heading in the near-term. This week, there was only stock-specific activity seen in the market; but, honestly, nothing was convincing enough. So, the pragmatic strategy would be to wait for some sort of trend deciding action and then one should be looking to place aggressive bets.
NSE Scrip Code – MUTHOOTFIN
View – Bullish
Last Close – Rs. 1315
Justification – This gold financing giant has been one of the rank outperformers over the past few years. It is very rare to see any kind of significant correction in the counter and even if it happens, investors just pounce on it to add to their portfolios. After a smart V-shaped recovery from March fiasco, the stock prices went into a consolidation mode, and the range was very much confined. With last week’s smart rally, the daily chart now exhibits a ‘Range Breakout’ and since the move is accompanied by decent volumes, we expect the rally to extend in coming days. Traders are advised to buy on a decline towards 1,290 – 1,270 for a target of Rs1,445 in coming weeks. The stop loss can be placed at Rs.1,210.
NSE Scrip Code – BHARTI AIRTEL
View – Bearish
Last Close – Rs. 586.25
Justification – This stock managed to find strong support around 400 and the recovery mode started in late October itself. This recovery eventually turned into a strong upward rally to post new highs beyond 600 after its recent quarterly numbers. Due to lack of follow-up buying, the momentum fizzled out and hence, stock prices vacillated in a small range throughout last week. Now, if we meticulously observe the intraday time frame chart, we can see a breakdown from the upward sloping trend line around 588. Although the major trend remains strongly bullish, we are advising a contradictory sell in this stock purely as a trading punt. One can look to sell for a target of Rs 563 in the coming days. The strict stop loss can be placed at Rs.604.
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