Market report by Mr. Manish Yadav, Head of Research, CapitalAim
The Sensex scored to a record high on Mondays trading and crossed 39,000 mark for the first time along with global markets rallied in day trading. A rate cut hope is also played in the rally. Unfortunately Benchmark Nifty50 is just a short 35+ points from its all time peak. Markets loose steam in the trading after traders cuts bullish bets on the worries of monetary policy ahead.
Tuesday's market gain almost 44 points or 0.38% at 11713. The Weekly strong bull candle which settled above its previous week high indicating continuation of positive momentum ahead in the markets. The Oscillators of gauging the Overbought conditions like RSI, Stochastic, and MACD are on higher side shows the overbought in benchmark indexes. We expect the index to consolidate in the range of 11400-11800 with some stock specific action.
Stock recommendations :
VOLTAS: BUY| At : Rs 642| Target: Rs 675|
VOLTAS is in business of air conditioners and as the summer season peaks up the demand for consumer durables like A.C. will pick-up. Voltas is already formed a triangle pattern in a rally triangle in a running rally is a continuation pattern this will take voltas to newer highs.
GODREJIND: BUY| At : Rs 555| Target: Rs 570|
GODREJIND is trading above its 200 DMA. A rate cut announcement will make stock for more upside momentum. Consolidation is happening between 550-525 a breakout above on the upper consolidation can lead it towards 570+ levels in short term.
IBULHSGFIN: BUY| At : Rs 880| Target: Rs 900|
IBULHSFIN is getting resistance at around 878 levels which is its 200 DMA. If it breaks above 880 levels we will see 900+ levels in very short term. Ibulhsfin is also a High beta stocks and a rate sensitive stock which quickly react to any announcement.