Ruchit Jain, equity technical analyst at Angel Broking, says recent selling with a rise in volumes points to a continuing downtrend ahead. The Nifty is expected to break the September low support of 7,540 this week (January 11-15) and dip towards 7,400-7,450.
Investors should not buy in a hurry at the current juncture, says Ruchit Jain
Ruchit Jain, equity technical analyst at Angel Broking, says recent selling with a rise in volumes points to a continuing downtrend in the broader markets going ahead. Investors should not buy in a hurry at the current juncture, he adds. (Watch)
Buy Tata Motors, Tata Motors DVR: A limited downside is seen in both the stocks and investors may utilize any declines for buying. Tata Motors has retraced most of the upmove and looks attractive around Rs 335-336 levels.
Buy Cipla: The stock has shown range-bound movement in past 5-6 months with no significant correction or rise. Cipla has major support at Rs 603 on weekly charts and looks attractive around Rs 605. It has also been one of the outperformers in the large cap pharmaceuticals space and can be accumulated on dips.
Avoid ICICI Bank, Axis Bank: A downtrend in banking stocks is expected to continue. Both Axis Bank and ICICI Bank may correct during the week and the risk-reward ratio appears to be unfavourable to make fresh long positions.
Buy IGL: Recent gains were backed by good volumes and the stock may continue to move higher. IGL has crucial support at Rs 540 and a target of Rs 600 appears possible in the near term.
Buy Petronet: The stock is showing good strength. Investors may look at a target of Rs 282 in the near term with stop loss below Rs 240.
Neutral on ONGC: Once the recent highs of Rs 240-245 are taken out, investors can look at an upside towards Rs 260-265 over next 3 months. Investors may use dips in ONGC to accumulate.
Buy Tata Power: The stock has shown the initial stage of an uptrend. Tata Power has "good support" at Rs 60 and is seen testing an immediate resistance of Rs 74-75 in the very short term. The stock is preferred over the other stocks in this sector - Adani Power and Reliance Power.
Buy India Cements: This is a good bet among mid cap names and may move up to Rs 110-112 levels in near term.
Buy Bharti Airtel: Outperformance seen in the recent fall indicates the stock can resume its uptrend. Long positions in Bharti Airtel can be made at current levels for a target of Rs 370 with stop loss at Rs 304.
Buy TCS: This is a preferred pick among IT stocks. TCS has been trading in a range for past 6 months and prices are around the lower end of the range.
Buy DLF: The stock looks attractive around Rs 105. DLF is expected to continue to quote a range of around Rs 105-102 on the lower side and Rs 120-125 on the higher side. Traders with a 1-2 month view may buy around the lower side of the range to book profits around Rs 125.