CREALTH DIWALI PICKS
1) SOUTH BANK – CMP – 32, TARGET – 50, SL – 25, UPSIDE – 56%
2) UJJIVAN FINANCE – CMP – 348, TARGET – 500, SL – 285, UPSIDE – 44%
3) RCF – CMP – 88, TARGET – 150, SL – 70, UPSIDE – 70%
4) AB CAPITAL – CMP – 182, TARGET – 300, SL – 140, UPSIDE – 65%
5) SINTEX PLASTIC – CMP – 92, TARGET – 175, SL – 70, UPSIDE – 47% **
All targets are expected to be achieved by next Diwali.
CREALTH NIFTY VIEW
Nifty closed at 10234.5 at all time high with a positive pattern breakout as it closed above 10180 though the pattern breakout will be confirmed only if Nifty closes above 10285. Nifty has formed an ascending triangle pattern which is a bullish pattern. If Nifty is able to close above 10255 then Nifty’s next target will be (10185-9685) = 400 + 10185 i.e 10585.
Hence if Nifty closes above 10285 then its next target will be 10585 which will be achieved by end of November. If someone wants to go long at current levels then keep a strict sl of 10175. Going short at current levels in Nifty is not advisable until and unless 10175 is broken on closing basis.
Gyan Word – Ascending Triangle Pattern
An ascending triangle is a bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs. Traders enter into long positions when the price of the asset breaks above the top resistance. The chart below is an example of an ascending triangle:
Source : Investopedia
CREALTH SECTORIAL VIEW
Bank Nifty is facing strong resistance at 24850 as the highest OI build up is at 24900 and 25000 CE . Though Bank Nifty has bounced b0ack from 24500 which will act as a strong support. Once Bank Nifty closes above 24850 it can move upto 25200 which is the next resistance. On the downside if Bank Nifty closes below 24500 then it would be signs of worry and it can move down to 24200. As Axis bank has posted disaster results, hence all other private banks will also under pressure hence it will be interesting to see what Bank Nifty does. Nifty Metals, Nifty Pharma, Nifty FMCG are the three other sectors which looks good with the rising price of metals, dollar & GST benefits to the FMCG sector.
As Nifty Mid Cap, Small Cap index has lead the last rally hence it better to invest/rely on heavyweights rather than small, mid caps as any correction in global markets will be badly affecting the above two indices.
STOCK SPECIFIC VIEW
Bullish Stocks – Castrol Ind, Rel Capital.
Bearish Stocks – Orient Bank, Axis Bank.
CREALTH SUGGESTION TO TRADERS & INVESTORS
Our suggestion to all traders will be to stay light on long positions & hedge their positions by shorting the index if they take a long position in a stock. As the global markets are at all time highs and a small trigger can trigger a big sell off it is better to stay cautious & hedge your position as their can be a sudden gap down any day & no one will get time to cut their position on SL! Our suggestion to investors is to stay away from mid, small cap stocks & have cash in hand to enter at lower levels as one correction is stills awaited and one will get quality stocks at lower levels. So sit like a hawk to enter at lower levels and don’t just jump at current levels as more pain can be seen ahead! If Nifty corrects 5-10% from 10250 then small and mid caps will correct more than 15-20%. Hence staying light on positions and investing in SIP mode in quality stocks is the best strategy in the current scenario.
All the above writings are just a technical view, research! Every person should do their own research before investing/trading. Our clients may have position in the above mentioned stocks!
The article/calls and advice are subject to caveats. Postman News doesn’t bear any losses on these advices as such.