Mr. Romesh Tiwari, Head of Research, CapitalAim.
Benchmark Nifty50 opened on a positive note above 11000 levels, but traded sideways for the entire day and closed almost flat on a daily basis above 11000 levels with 78.60 points or 0.71% at 11111.05 levels.
On technical indicators, the MACD has now converged upward on the daily chart and also, the RSI has recovered from the oversold zone on the same chart which is now placed at 42.34 levels. If the Benchmark Nifty50 moves above 11,200 and sustains there, then we may see another round of rally up to 11,500. On the downside, breaking of 10,900 may trigger fresh downward slide which may test 10,700 levels. Nifty is expected to consolidate between 10,900 to 11,250 levels this week.
On the global front, the U.S.-China trade war remains a big concern for the growth of the world economy. This trade war does not seem to resolve soon as the U.S. recently blamed China of manipulating its currency and imposed a tariff on remaining Chinese imports to the U.S. against which China said to retaliate. Along with with this, the continued tension in the Gulf region, putting pressure on the world market. However; if this monsoon, the agricultural situation in India improves then it would provide some support to the Indian economy and the market.
For the next week, the stocks of Auto, Real Estate, Pharma and FMCG sector could move upward. The market is waiting for the government to provide some relief for FPI surcharge and stimulus for auto sectors.
On the international front, there would be CPI & Core CPI data on Tuesday, Core Retail Sales, Philly Fed Manufacturing Index, and Retail Sales data on Thursday.
DABUR : BUY| Above : Rs 441| Target: Rs 459| Stop loss: Rs 423|
DABUR is sustaining above the 20-day moving average on the daily chart and consolidating upward. MACD has shown upward crossover on the daily chart and RSI on the same chart is looking strong, which is now placed at 68.59 levels. The 50-day moving average has crossed over upward the 120-day moving average on the daily chart.
BERGER PAINTS : BUY| Above : Rs 361| Target: Rs 375| Stop loss: Rs 345|
BERGER PAINTS has shown the upward breakout of a symmetrical triangle on the daily chart formed by trend lines drawn from the high of 29-Aug-2018 and from the low of 23-Oct-2018 on the daily chart. Also, it has breached the resistance levels at 350 levels on the daily chart. MACD on the daily chart showing buy signal and 20-day moving average on the same chart has crossed over upward the 50-day moving average.
KOTAK MAHINDRA BANK : BUY| Above : Rs 1536 | Target: Rs 1598 | Stop loss: Rs 1474|
KOTAK MAHINDRA BANK is now sustaining above 20-day & 50-day moving averages on the daily chart where the 20-day moving average has shown upward crossover of the 50-day moving average. MACD has converged upward on the daily chart and RSI on the same chart, is showing buy signal which is now placed at 56.97 levels.