By Rahul Shah
Equity benchmark index accomplished a 3rd month-to-month slide (Sensex down 883 factors or 1.5% in April) this 12 months as greater oil costs, geopolitical pressure, FIIs promoting, extended warfare between Russia-Ukraine and sharp decline in international market dampen the feelings. After buying and selling inside a 500-point vary for your complete week, the Sensex ended within the pink on Friday. Finally, Sensex slipped 136 factors or quarter % whereas Nifty shed 69 factors or 0.4% in opposition to the earlier week shut.
This week will likely be crucial in India in addition to international bourses. Mega LIC IPO value Rs 21,000 crore will likely be popping out on May 4, which can pull out cash from the secondary market to main market. Traders are suggested to keep away from discount searching out there until a transparent pattern emerges. US Federal Reserve rate of interest determination will likely be held on May 5. Bank of England rate of interest coverage determination additionally to be introduced on the identical day.
Wall Street wrapped up a dismal April marked by investor hand-wringing over rising rates of interest, relentless inflation, shock company earnings outcomes and international unrest. Dow Jones slipped 1000 factors in opposition to the earlier week’s shut. The S&P 500 erased 9 % in April, its worst month since March 2020. It’s additionally down 14 % in 2022, its worst begin to the 12 months since World War II. On the home entrance, quarterly outcomes and auto month-to-month gross sales numbers will likely be in focus throughout a brief spun subsequent week (Tuesday vacation).
Continued FIIs promoting (over Rs 11000 crore FIIs web sellers this week), geopolitical pressure and spiked in oil costs are main issues out there. The US greenback index scaled its highest since January 2017 above 103, fueled by the expectations that the US Federal Reserve will likely be extra aggressive than its friends and issues over slowing progress in China and Europe. The US central financial institution is predicted to extend rates of interest by a hefty 50 foundation factors at its May 3-4 assembly to convey inflation beneath management. Investors additionally remained cautious about China’s Covid state of affairs amid fears that Shanghai-style lockdowns could unfold to different elements of the nation, whereas Russia’s newest transfer to chop gasoline provides to Bulgaria and Poland escalated an power disaster in Europe.
Nifty is buying and selling between its 50 DEMA and 200 DEMA positioned at 17248 and 16865 respectively. It has fashioned a bearish candle on the day by day scale and has been dealing with resistance at greater ranges of 17350-17500 zones. We count on volatility to proceed and helps on the decrease facet are positioned at 17000-16800. Nifty is more likely to commerce in a broad vary of 16800 to 17500 zones.
ACC: Buy
Target: 2500 | Stop loss: 2280
ACC has given a trendline breakout on the day by day charts and has been making greater highs since previous few buying and selling classes. It has fashioned a bullish candle indicating shopping for curiosity. There is optimistic momentum throughout the cement area which can help the costs to proceed the up transfer. RSI oscillator can be positively positioned on the day by day and weekly scale. Considering the present chart construction, we advise merchants to purchase the inventory for an up transfer in direction of 2500 with a cease lack of 2280
Asian Paints: Buy
Target: Rs 3400 | Stop loss: Rs 3150
Asian Paints has given a breakout of the falling trendline and has fashioned a bullish candle on the day by day chart indicating energy within the counter. RSI oscillator can be positively positioned on the day by day and weekly scale. 3 Considering the present chart construction, we advise merchants to purchase the inventory for an up transfer in direction of 3400 with a cease lack of 3150.
(Rahul Shah is the Senior Vice President, Group Advisory Leader-PCG, Broking & Distribution, Motilal Oswal Financial Services. Views expressed are the writer’s personal. Please seek the advice of your monetary advisor earlier than investing.)
Source: www.financialexpress.com”