Market View for week 2-6 June:
Last week we had said that markets may touch all time high. During first half of the week markets have rallied to 7504 and retraced from there and closed at 7230. Our support at 7200 is still intact on closing basis. Markets are now ready for some sort of correction.
View: After
big rally markets seem to be exhausted. Nifty is trading choppy for
last few trading sessions. RBI policy is scheduled on 3rd June. Markets
are waiting for policy decisions. Markets are also waiting for important
announcement from new governement.
Short Term (Few days to a Week) : Markets may see a correction and can come down to its next support levels of 7110-7015 and at 6880. Resistance is in the range of 7330-7350
Medium Term (Few weeks to a month):
I maintain bullish view in medium term. People are buying at every
decline. Statistics suggest that, after a small correction rally may
continue.
Long Term (Few months to Year): Bullish view is maintained. We may experience unprecedented investment opportunities in year/s to come.
Trading View: Buying in Nifty Future is advised on declines near support
View on Sectorial Indices:
In last one week all 3 indices i.e. IT, Pharma and FMCG has found support. Cement is expected to continue its rally on upside.
Most stocks from these sectors have started moving up. In coming week
we see buying opportunities in these 3 sectors. One may trade in stocks
like Ambuja, Biocon, Colpal, Hindunilever, Cipla, Dabur, DivisLab, DrReddy, Glennmark, Grasim, HCLTech, TechM, JubFood, Sunpharma.
Other
indices are in consolidation or correction. Wait patiently for the
stocks to come to the support levels. Oil and Gas sector may see sharper
correction.
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Recommendations of the week:
COLPAL(Buy) - Buy Colgate Palmolive near 1380 for target of 1410. Maintain stop loss at 1365
HINDPETRO(Sell) - Sell at CMP of 400.65 for target of 390-385. Maintain stop loss at 410
HCLTech(Buy) - Buy near 1415 for target of 1450. Maintain Stop loss at 1400
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