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Wednesday, October 27, 2021

Profits may be seen at upper levels, keep position light: Angel Broking

Sameet Chavan, ANGEL BROKING

On September 27, on the basis of good global cues, the market started trading with a positive note. Nifty was on the verge of setting a fresh high. But at the same time profit recovery came in the market at the upper level. The next day, we saw some slowdown in the global market, which also affected the Indian markets. Nifty showed slipping below 17,600. But the market recovered in the last hours of trading and Nifty regained the level of 17,700 till the closing. After this, the market remained sluggish on the last trading day of last week and it closed below 17600. In the end, the continuous bullish phase of Nifty seemed to stop and on October 1, Nifty closed with a decline. But if we look at the whole month of September, then this month was good for the stock market. On a month-on-month basis, the Nifty gained about 3 per cent in September.

Our advice was to be cautious for the second fortnight of September. But this period saw much more growth than we expected. It would not be appropriate to express any apprehension in view of the ongoing bull run in the market but we still advise to remain cautious in view of the current time projection and negative divergence in momentum oscillators.

The market looks over-stretched at the moment. That’s why we are again advising to keep the position light. We have seen a glimpse of this possibility last week as well. But the fundamentals of the market have not been hurt.

As far as key levels for the market are concerned, this week’s rally will be limited. We do not think that Nifty will be able to cross the resistance of 17,800–17,950 in this period. On the downside, Nifty is seeing support at 17,450 -17,300. It is only when this level is broken that the first signs of weakness will be visible.

There has also been a jump in the Fear Index India VIX. Hopefully this week we will get to see profit recovery again at the upper level. In view of this, traders would be advised to keep their positions light and put a stoploss on their current positions. We will get to see action in select stocks in the market. We should stick to the strategy of betting on quality select stocks. Keep charging profits from time to time.

Today’s two calls in which there can be huge earnings in 2-3 weeks

Kirloskar Ferrous: Bullish | LTP: Rs 257.45 | Buy this stock with a stop loss of Rs 241 for a target of Rs 284. This stock can give a return of 10.3 percent in 2-3 weeks.

Tata Consultancy Services: Bearish | LTP: Rs 3,730.20 | Sell this stock with a stop loss of Rs 3810 with a target of Rs 3620 -3580. In 2-3 weeks, a downside of 3-4 percent can be seen in this stock.

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Shehnazhttps://www.businesskhabar.com/
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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