Bonvista Financial Planners

Market View for week 5-9 May: 

We have seen correction (Small downward movement) from 6870 to 6650. This is almost 200 points from all time high. We had said that markets have mild support at 6640. Markets are still holding on to this level.  

The question is whether this correction over? Well we do not know, for sure. But, looking the way markets rallied from 6000 to 6800, I feel the correction can be deeper than current levels. We may see lower levels. Before moving further down market may see a small pullback. The resistance comes at 6790. The strong support emerges in the range of 6530 and 6430.   

Long term trend is up. However for short term we may see some slide. 

Lot of choppiness is expected in due to mega event of the election results.  

 Long term investors should look to buy on deeps. Many Mid Caps are available at attractive valuations. 

Traders should try to take advantage of small moves. During times like this (high volatility expected) the portfolio should be hedged. Traders can build short term Sell positions. But these positions should be hedged with some long calls.                                                                                                                                                                                                                                                                                                                    

 View on Sectorial Indices:  

IN coming week, IT can seem some upward momentum. Very short term buying can be done in stocks like TechMahindra, Wipro, TCS, HCLTEch. Bank Nifty is facing resistance at 13224-13415.  PSU Banks are looking good.  

Metals are in for a deeper correction. We can see furthter slide in Metals in coming week.  

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Recommendations of the week: 

Ambuja Cement (Buy): Ambuja Cement found support near 196. Buy Ambuja at Cmp of 201.9 for a traget of 210. Maintain stoposs at 196 

Idea (Sell): Idea correcting and moving down to it strong support near 129. Sell idea near CMP of 134.20 for a target of 130 

CAIRN (Buy): Cairn has seen sharp correction in last week. Now it is trading at its support. One can buy Cairn with stoploss of 328. Enter at around 332 for a target of 342.                                                      

For any clarifications on these recommendations , you may mail us on bonvistaplanners@gmail.com