Market View
Nifty: CMP: 24,918.45
Markets traded with volatility, losing nearly half a percent as the consolidation phase continued. The first half of the session was subdued, with the Nifty inching higher but failing to surpass Tuesday’s high. Sentiment shifted in the second half with a sharp decline in select heavyweight stocks, leading to a close at 24,918.45, down by 0.5 per cent.
Most sectors ended lower, with energy, metals, and autos among the top losers. The broader indices showed a mixed trend, with small caps losing nearly 1 per cent. Excessive volatility, driven by mixed global cues, is likely to persist, especially with upcoming US. data releases.
On the technical front, Nifty is hovering around the support of its short-term moving average, the 20-day EMA, at 24,900. Sustaining this level is crucial for any potential rebound; otherwise, profit-taking may resume, with next support around 24,500-24,750 zone. Traders are advised to maintain a stock-specific approach and hold positions on both sides of the market.
Stocks Recommendations
ITC Limited | LTP: Rs 514.35 | Buy | Target: Rs 555 | Stop-loss: Rs 495
We are seeing noticeable traction in the FMCG counters and ITC is trading in sync with the move. It has formed a buying pivot, after registering a breakout from bullish continuation pattern. Considering the price structure and buoyancy in the sector, we expect stock to perform well. We thus recommend creating fresh longs around current levels.
Havells India Limited | LTP: Rs 1,957.60 | Buy | Target: Rs 2,120 | Stop-loss: Rs 1,890
Havells has been a consistent performer in the consumer electronics space, maintaining a steady uptrend since 2011. Following a breakout from its consolidation phase in March 2024, the stock has been gradually climbing and is now trading near its record high. The recent tight consolidation has formed a new buying pivot, signalling a likely resumption of its uptrend. We recommend initiating fresh long positions in the stock.
Bank of Baroda | LTP: Rs 232.80 | Sell | Target: Rs 214 | Stop-loss: Rs 243
The PSU sector is under pressure, and Bank of Baroda is following the broader trend. It has broken down from a consolidation range and fallen below the key support of its 200-day exponential moving average (DEMA). The chart pattern suggests this bearish trend may continue, so traders should consider initiating fresh short positions at these levels.
(Disclaimer: Ajit Mishra is SVP of research at Religare Broking Limited. Views expressed are his own.)
First Published: Sep 12 2024 | 6:26 AM IST
