Nifty is very bound to range and very flat for three consecutive sessions. Where are the simple questions and actions? In fact, the broader market is superior in the last two sessions. So, do we see a reversal coming there?
Rahul Sharma: Now, Nifty is on an empty land, and at this point it does not belong to bulls or bears. Now the market is likely waiting for triggers that will cause major breakdowns or breakouts. Now we all know 22,800 and its importance. So, if you fall below that, you will need to open 22,500 doorways. The advantage is that the current level is 23,000. Therefore, 23,000 people will be taken out. Close above it, the gate opens at 23,300. So, if we break out of this tight 200-point range we’ve been trading, we’re going to have a 300-point move on either side.
Currently, the silver lining is in index heavyweights like Reliance, HDFC Bank and Bajaj Twins and is on a fairly good pace, and at the same time as yesterday’s session I saw Bank Nifty do well.
In fact, Banknifty has not actually broken the previous month’s low, so it actually holds it higher in the past few trading sessions compared to Nifty. And what this means is that at least the meaningful bounceback is very round the corner, with 23,300 being something we expect in the very short term.
Now this is a very tricky market. Volatility is driven by what’s happening overnight. So if there’s an overnight statement by Trump about tariffs and other developments, it creates an impact and we see the gap-down openings happening here.
So at this point, focus on the selected stocks that are doing well. One of them is the Reliance Industry. There are purchase recommendations at Reliance Industries.
Compared to the cleverest in the last 3-4 trading sessions, stocks have been going relatively well, and December has formed a base around the 1200 mark, so at that level Support was found around. The last multiple attempts to see a stock break down that level.
Therefore, we feel that we can purchase trust at these levels from a positional perspective, from a short-term perspective, from a medium-term perspective. Traders can look for 1,270 and 1,275 targets, but slightly medium-term targets will be around 1,340 in benefits.
So trust is what we like at this point. Apart from that, it is a very slippery ground for the market. Convictions are not built on either side, so bets are kept as minimal as possible.
But today the energy basket is doing pretty well overall. Of course, all of these names have beaten names, and on the whole, we see good profits from the OMC’s side. The gas space is similarly seeing a very good momentum there. So, is there any stock in the energy basket you’re picking up?
Rahul Sharma: So the beat, a bit of recovery or bounceback like these stocks took is highly anticipated and appears to have started yesterday. In fact, these are part of the counter where many wealth destruction was present.
Many traders are also stuck on the derivatives. So, at least as far as February series is concerned, look at the bounceback as an exit opportunity, at least for this series.
Therefore, we believe that these bounce backs will be seen to brighten up your position. Well, it looks good, Rec, PFC twins are what comes to our purchase radar.
The REC could head very well towards the 420 mark. This inventory is, again, one of the names that have divergence in momentum indicators. It’s also PFC, but both move to tandem, so it’s best to swap one of the two.
So Rec is something you should go to. Place a stop loss on the 390 and you can go on this for a longer period of time. In the case of energy inventory, it is best to lead the market to a solid position and watch it before making serious commitments on either side, and to form the market on solid ground.
Another space I wanted to do your take was a metal basket. Because what we’re seeing is that the chatter around the Dollar Index surge has been a bit calming down, with stocks like Tata Steel and Hindalco. It will recover again. Yesterday, I have that bullish commentary and bullish views especially shared in aluminum products, so I have stocks that stand out just as well as yours, so what connects them as stock-specific ideas are Is there?
Rahul Sharma: So it appears that Metal Index has completed the integration and is about to create a breakout. Nowadays, metal is driven by much of what happens in a global setup.
But some of the counters like the Tata Steel are what we like, and they have a very similar setup to Metal Index, and a possible breakout here takes us somewhere on the 145 mark. Traders can purchase Tata Steel at these levels, as they can go. , stops below the drawback by 133, and a jump of 7-8 Rs.
We were making the purchase of Hindelco, which advised traders to book profits with today’s up move. Perhaps the next possible target for the stock is around 660, so 20 Rs of upside can also be taken at Hindelco.
Again, risk rewards are not that good in Hindarkko, like Tata Steel, so be very selective. The metal is definitely cool. Tata Steel is something you should go. Apart from that, things like the Vedanta are something we are also paying attention to.
This stock is held relatively well compared to what the entire sector did, and from a trading standpoint, the stock can also head towards the 450 mark.
So this can be purchased with a stop loss at 420, and this is still expected to be upside at Rs 20. So, the netnet to answer your questions is recommended that the metal basket looks decent and get the calculated bet the same.
