What do you make of this current market strength that we are seeing today? Is this strength likely to be sustained in the near future?
After the steep sell-off that we saw in two back-to-back trading sessions, the short-term rally in just one trading session (today) has been significant.
The market is approaching resistance at about 15,840-15,830 zone. That is where the immediate hurdles lies. But even if there is a decline of about 50-60 points from here on, buying on dips is advised. The immediate support lies close to about 15,750-15,760.
If the market breaks out of 15,840-15,830, it may eventually hit levels of 15,900-15,950 which will again continue to act as a hurdle. So overall, the market continues to trade in a band of 15,900 on the upside and probably 15,600-15,550 on the downside.
In this current market condition, what would be your top picks?
I have a couple of buy recommendations. Real estate sector has been outperforming. When the market corrected in the last few trading sessions, real estate hung on. My first pick is DLF from the pack. One can buy the stock at current levels with a target price of Rs 345 and a stop loss at Rs 325. It is on the verge of a break-off from sideways consolidation.
The second stock recommendation is Aarti Industries. It a new entrant in the F&O space. It is showing some signs of an up move. The volumes are good and so one can go ahead and buy the stock at current levels for a target price of Rs 915. Put a stop loss at Rs 850.
