igl: IGL & BEML which have increased by more than 20% in one week: should we buy, sell or hold?
In an interview with ETMarkets, Meena said: “There is a ‘risk on’ situation in the market where high beta spaces like banking and metals are outperforming while the defensive FMCG sector is underperforming. “, edited excerpts:
What a week for Indian markets. Both Sensex and Nifty50 were up 1% and recovered crucial resistance levels. What led to the price action?
It was a bumper week for the market where Nifty50 and S&P BSE Sensex continued their journey north. The main reason for the market rally is the “FOMO” factor among FIIs after the Nifty managed to smoothly return above its 200-DMA without entering the beer market.
FIIs which were selling at 15,500, are now buying aggressively at 17,500. Other than that, improving global signals, easing inflation concerns and strong corporate earnings were the main factors driving fueled the market rally.
What should be the trading strategy for the coming week as Nifty50 trades around the 17700-17800 levels?
Technically, the Nifty50 is trading near the critical resistance of the 17,700 trendline, but the momentum is intense where the Nifty50 can easily break this level to head towards the 18,000/18,100 levels.
However, if the Nifty50 stops near the 17,700 level, there is a likelihood of profit booking where 17,400-17,200 will be an immediate demand zone.
“ Back to recommendation stories
India celebrates its 75th Independence Day on Monday. If someone is considering going into trading, can they become financially independent? What are the key things to keep in mind before becoming a full-time trader?
Trading seems lucrative but it is not easy to make money in trading because you have to manage your emotions as well as market volatility to make money and data shows that less than 10% of traders assets earn money.
Trading requires a different mindset and skills; therefore, you need to start part-time to understand whether it works for you or not, and then you can gradually move into full-time trading.
You have to switch to full-time trading if you continue to make a consistent profit by sticking to your system.
and has increased by more than 20% over the past week. What should investors do? What does the graph suggest?
GLI: It’s bottoming out after a long period of underperformance, and it’s managed to move above its 200-DMA; therefore, investors may accumulate this meter despite a recent rally. On the upside, we can expect a move towards the 480 level while 400 will serve as the basis on the downside.
: The stock is experiencing strong upward momentum after a long period of consolidation. In the short term, it looks a bit overbought, but the overall pattern suggests much more upside towards the 1500 level. On the downside, 1070 is the immediate support level while 1000 should serve as the floor for this counter.
BEML: The stock has been on a steep rise for the past few days, but 1800 is an important trendline resistance; above that we can expect a move towards the 2100 level while if it stops near the 1800 level it may see a pullback towards the 1600 level. This title should be seen as a dynamic game rather only as an investment choice.
Sector-wise, metals rose more than 4% while consumer staples fell more than 1% in a buoyant market. What led to the price action?
There is a “risk on” situation in the market where high beta spaces like banking and metals outperform while the defensive FMCG sector underperforms.
The market recouped its losses and turned positive on a YTD basis. Do you think Nifty could recoup 18,000 in the August streak?
As I said technically, Nifty is trading near critical resistance at the 17700 trendline, but the momentum is intense where Nifty can easily break this level to head towards the 18000/18100 levels.
Freedom choices for investors for Independence Day week?
Momentum is strong in the market where Nifty and Sensex are doing well thanks to FII buying, but many pockets of the market are outperforming.
In large caps, the stock of power
looks lucrative as, in the mid-sized space, Chalet Hotel, Gujarat Flurochem and KPIT are showing strength to witness double-digit returns in the coming weeks.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times.)