Mr. Romesh Tiwari, Head of Research, CapitalAim
The Benchmark Nifty50 was bearish for the entire week. The index remained bearish below the 120-day moving averages on the daily chart and sustained below rising channel on the same chart. On Friday Nifty50 traded mixed, mostly within the narrow range of 11307 on the higher side to 11211 at the lower side, but it managed to close at 11284.30 levels with nominal gains of 32.15 points or 0.29% on a daily basis.
For next week, the Benchmark Nifty50 Index is still overall weak on charts and could find support around 11100-11150 levels. The index is sustaining below the rising channel on the daily chart below 120-day moving average and consolidating there within a narrow range of almost 200 points on the same chart. 20-day moving average has shown a downward crossover of 50-day moving averages on the daily chart have and MACD is showing a sell signal on the same chart along with the RSI looking weak, now placed at 33.23 levels. If the index sustains below 11200 levels, then further downward movements will be triggered.
Further, the rise in the geopolitical tension in gulf region combined with weakness in Indian currency against the U.S. dollar could keep the Indian market around the lower levels as we are the world's third-biggest oil importer and crude prices are edging higher on concerns about supply disruptions. Other than this, disappointing corporate earnings by large are also adding to the weakness of the Benchmark Nifty50. Weak monsoon on the major parts of India is also weakening the sentiments.
For the next week, the stocks of the pharma sector could show positive moves while metal is expected to remain weak.
Next week on the international front there would be data on CB Consumer Confidence on Tuesday, ADP Non-Farm Employment Change, FOMC Statement, Federal Funds Rate and FOMC Press Conference would be on Wednesday, ISM Manufacturing PMI data on Thursday and on Friday, there would be data on Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
DR REDDY: BUY| Above : Rs 2715| Target: Rs 2824| Stop loss: Rs 2605| DR REDDY Lab is showing a recovery from the support of 20-day moving average on the daily chart and now sustaining above the 20 & 50-day moving averages. It breached the resistance levels of 2690 and it has closed on a positive note above 2700 levels on the daily chart along with 20-day moving average having upward crossover of 50-day moving average. Also, the MACD has shown a upward crossover and RSI showing buy signal, now placed at 60.31 levels.
TITAN: BUY| Above : Rs 1115| Target: Rs 1160| Stop loss: Rs 1070| TITAN has been sustaining and consolidating above the support around 1065 levels on the daily chart and now trying to recover from there. MACD on the same chart has shown a upward crossover while the RSI is recovering from the oversold zone which is not placed at 37.20 levels.
ICICI PRU: BUY| Above : Rs 409 | Target: Rs 425 | Stop loss: Rs 393| ICICI PRU sustaining above the support of the trend line drawn from the low of 14-May- 2019 on the daily chart and consolidating upward. It is also forming a ascending triangle on the same chart with the base line around 405 levels. MACD has shown a upward crossover and the RSI is showing buy signal which is now placed at 62.87 levels.