Index: Nifty Observation
Nifty remained on the sidelines, but closed above the Friday high of 15,200. We believe 15,200 remains crucial for the index to take it higher above 15,500. We are looking at an impulsive rally towards 15,750 as per Elliot wave theory.
STOCK IDEAS :
Analyst: Parag Shah – Technical Analyst, Research, Edelweiss Wealth Management
CCL: Buy
CMP: Rs 337
Target: Rs 365
Stop loss: Rs323
CCL had given a trendline breakout at the start of May. The current move confirms a follow through to the previous move, reinforcing the bullish outlook. Volumes on follow through have also been above average.
Bharat Forge: Buy
CMP: Rs 658
Target: Rs 707
Stop loss: Rs 634
After making a base at levels of Rs 550, the stock is now making a base around Rs 635 levels. A move above Rs 678 would bring a fresh momentum on the upside.
Indigo: Buy
CMP: Rs 1,719
Target: Rs 1,840
Stop loss: Rs 1,658
The stock had been an underperformer till date. Current closing has ensured the formation of a higher top. Current close has also ensured a follow through to the Triple Top Breakout.
ONGC: Buy
CMP: Rs 114.6
Target: Rs 121.50
Stop loss: Rs 110.50
The stock has made a base around the Rs 110 level. This strong base could propel the stock to higher levels. The RSI has also given a bullish crossover, which is a sign of bullishness.
DERIVATIVES:
- FIIs have turned net long in index futures. Their net position stands at 23k long contracts. In the last 6 trading sessions, FIIs have covered 25k short contracts, which propelled Bank Nifty to gain 10%. We expect momentum in banking stocks to continue once the consolidation phase gets over.
- PSU stocks have been witnessing long buildup in the derivative segment. SBI, Bank of Baroda, PNB are our top picks in the PSU space since these stocks have witnessed the highest long buildup.
Actionable: Nifty Bank
Buy Nifty Bank 35000 call @ CMP 204
SL: 120
Target: 500
Expiry: 27 May
Commodities
Analyst: Ankit Narshana, Commodity Analyst, Edelweiss Professional Investor Research
- Buy silver above Rs 71,900; target: Rs 73,500; stop loss: Rs 72,800
- Buy gold above Rs 48,680; target: Rs 49,500; stop loss: Rs 48,300
- Sell copper at Rs 747; stop loss: Rs 753; target: Rs 730
