The index closed below 17,000 on Friday. How do you rate the move and what is the path ahead?
One positive that I witnessed in this selloff is that the market has still not broken their important support levels which come in between 16,942 and 16,850. Nifty bounced back to 17,600 levels from the recent low that it had witnessed during the week. So this support is going to play a crucial role for the next week.
I believe the market would continue to stay range bound between 16,850 and 17,600. So if this support is not broken, we may witness a bounce back in the coming week. So therefore these support levels are going to play an important role and we have to see as to how the trend develops or how the price reacts at these supports.
What are the picks that you have going forward into the new week?
I have a mix of buys and sells for the coming week. So first I will start with Bajaj Finserv. This stock has broken support and has been trading weak for the last few days. I think more downside is here to come therefore I recommend a sell in Bajaj Finserv with a stop loss at 17,000 for a downside target of 15,500.
Then the second one is a buy on Wipro. Wipro and Infosys have managed to show strength and I think this strength could help the market start positively next week. Wipro has technically broken a resistance at 670 levels and closed above that level. So I recommend a buy in Wipro with the stop loss at Rs 660 with an upside targets of Rs 720.
Third is a little bit high risk call which is a buy on LIC Housing Finance. The stock is trading on support of 363. I feel 360 is a good support for the stock which has bounced back from these level multiple times in the last few months and therefore I recommend a buy with the stop loss at Rs 350 with upside targets of Rs 375.