Nifty: CMP: 24,143.75
The markets remained lacklustre and closed flat, taking a pause after Tuesday’s decline. Following a subdued start, the Nifty traded within a narrow range and ultimately ended at the 24,143 level.
Sector-wise, metal and pharma stocks were the top losers, while resilience in the IT sector helped limit the overall decline for the second consecutive session. The broader indices also slipped, losing over half a percent each.
With no major domestic triggers, participants are now looking to global markets for direction. An intermediate recovery in the US markets is providing some relief, but ongoing pressure in select heavyweight stocks across sectors is limiting the recovery. In light of the uncertain outlook, we recommend maintaining a cautious stance and adopting a hedged approach until there is more clarity on the market’s next move.
Stocks Recommendations
Berger Paints (I) Limited | LTP: Rs 547.20 | Buy | Target: Rs 590 | Stop-loss: Rs 523
We are seeing a noticeable strength in paint stocks and Berger Paints is trading in sync with the move. It has formed a fresh base around the support zone of multiple moving averages on the daily chart and looks set for the next leg of the up move.
HCL Technologies Limited | LTP: Rs 1,626.15 | Buy | Target: Rs 1,695| Stop-loss: Rs 1,578
The IT majors are inching gradually higher after the marginal dip and HCL Tech has reclaimed its short term moving average i.e. 20 DEMA as well. The chart pattern indicates the possibility of a retest of the record high soon.
RBL Bank Limited | LTP: Rs 205.67 | Sell |Target: Rs 184 | Stop-loss: Rs 217
RBL Bank has witnessed a fresh breakdown from a consolidation range and inching gradually lower. The prevailing weakness in the banking pack is further adding to the negativity. Traders should align positions accordingly.
(Ajit Mishra is SVP of research at Religare Broking. Views expressed are his own.)
First Published: Aug 16 2024 | 6:26 AM IST
