Top 10 trading ideas by experts for next 3-4 weeks as bears rule Dalal Street

Bears mauled Dalal Avenue for yet one more week with the benchmark indices and Nifty Midcap 100 index falling 4 % every, whereas the Smallcap 100 index plunged practically 7 %. The sudden hike in repo fee and money reserve ratio by the Reserve Financial institution of India, recession fears raised by the Financial institution of England, and certain quicker coverage tightening by the US Federal Reserve dampened market sentiment.

The Nifty50 fell practically 700 factors to 16,411 through the week ended Could 6, the bottom closing degree since March 9. Within the final one month, the index misplaced practically 8 %.

The index now traded manner beneath 10, 20, 30, 50, 100 and 200 days easy shifting averages. Therefore, contemplating the bears’ dominance, 16,150-16,200 could possibly be logical ranges to take a look at on the draw back as breaking of which may drag the index beneath the 16,000 mark, whereas 16,500-16,700 could possibly be hurdles within the coming days, specialists really feel.

“Globally, issues are extraordinarily bleak and will probably be tough to evaluate the scenario. We might keep away from going brief aggressively,” Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One, mentioned.

He additional mentioned that on the day by day time-frame chart, there could possibly be a ‘Pennant’ sample goal within the neighborhood of 16,200 – 16,000, which isn’t distant from the present degree. “We moderately await some reversal through the week.”

On the upper aspect, he feels, 16,500 adopted by 16,700 are the rapid ranges to be careful for.

Listed here are the highest 10 buying and selling concepts by specialists for the subsequent three-four weeks. Returns are primarily based on the Could 6 closing costs:

Shrikant Chouhan, Head of Fairness Analysis (Retail) at Kotak Securities

M&M: Purchase | LTP: Rs 894 | Cease-Loss: Rs 830 | Goal: Rs 1,000 | Return: 12 %

The inventory has carried out properly over the previous two months. It was round Rs 670 and from there jumped to Rs 945 degree with none significant correction. After touching Rs 945 degree, it’s falling with weak spot within the auto sector and the broader market.

Such shares are inclined to rebound rapidly if the market or sector turns into oversold. The first pattern of the inventory is constructive and primarily based on it, we must be patrons on the present ranges and additional draw back in the direction of Rs 850 ranges.

For this, one can preserve the final stop-loss at Rs 830. On the upside, it has the potential to go as much as Rs 940 and Rs 1,000 ranges.

Wipro: Promote | LTP: Rs 485 | Cease-Loss: Rs 500 | Goal: Rs 450 | Return: 7 %

It’s correcting from Rs 740 degree. Technically, the Rs 540 and Rs 500 had been severe helps for the inventory. Nevertheless, after spending a number of months in between, the inventory suffered a contemporary selloff and began buying and selling beneath Rs 500 degree.

It’s underperforming within the expertise basket and weak spot in the direction of Rs 450 degree is sort of attainable within the close to future.

The technique must be to brief commerce at present ranges with a brief time period view. Nevertheless, the stop-loss must be at Rs 500 to be secure for the brief place.

Nandish Shah, Senior Spinoff & Technical Analyst at HDFC Securities

NOCIL: Purchase | LTP: Rs 231 | Cease-Loss: Rs 220 | Goal: Rs 255 | Return: 10 %

The inventory worth has damaged out from the downward sloping trendline on the weekly chart. Major pattern of the inventory is constructive as it’s buying and selling above its 100 and 200 days EMA (exponential shifting common).

RSI (relative power index) and MFI (cash movement index) oscillators are positioned above 50 and sloping upwards on the weekly chart, indicating power within the present uptrend of the inventory.

The inventory worth has outperformed the Nifty500 by rising 2 % over the past week, indicating relative power within the inventory.

ITC: Purchase | LTP: Rs 267 | Cease-Loss: Rs 257 | Goal: Rs 288 | Return: 8 %

The inventory worth has damaged out on the day by day chart with greater volumes to shut at highest degree since April 12, 2022. Inventory worth has already damaged out from the symmetrical triangle on weekly chart.

Major pattern of the inventory is constructive as it’s buying and selling above its all-important brief time period and long run shifting averages.

Momentum oscillators like RSI and MFI are positioned above 50 and rising upwards, indicating power within the present uptrend of the inventory.

Ruchit Jain, Lead – Analysis at 5paisa.com

Tata Motors Futures: Promote | LTP: Rs 411 | Cease-Loss: Rs 424 | Goal: Rs 385 | Return: 6 %

Lately, the inventory had seen some consolidation inside a variety above its ‘200 DEMA’ assist. Nevertheless, on the final buying and selling session, the costs gave a breakdown beneath its 200 EMA the swing low assist.

The volumes publish the breakout was higher than the common and normally a sell-off with excessive volumes results in underperformance briefly time period. Additionally, the ‘RSI Smoothened’ oscillator is hinting at a unfavourable momentum and therefore, we anticipate the inventory costs to appropriate within the close to time period.

Therefore, merchants can look to promote Tata Motors Futures within the vary of Rs 410-414 for potential goal of Rs 389-385 in subsequent few days. The stop-loss for brief positions will be positioned above Rs 424.

ITC: Purchase | LTP: Rs 267 | Cease-Loss: Rs 252 | Goal: Rs 290 | Return: 9 %

This inventory has proven a relative outperformance throughout the FMCG house in previous couple of weeks. Inspite of the market correction in final week, this inventory has managed to offer constructive returns and the ’20 DEMA’ has been performing as a assist.

The ‘RSI Smoothened’ oscillator, which was overbought lately have cooled-off in previous couple of days and is now hinting at a constructive momentum. Therefore, we anticipate the relative outperformance to proceed.

Therefore, merchants can look to purchase ITC within the vary of Rs 266-264 for potential goal of Rs 290. The stop-loss must be positioned beneath Rs 252.

Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One

Hero MotoCorp: Purchase | LTP: Rs 2,563.35 | Cease-Loss: Rs 2,440 | Goal: Rs 2,660 | Return: 4 %

Hero MotoCorp is likely one of the underperforming car shares have seen some restoration within the final month and a half. In the direction of the tip of April, the worth broke out from the congestion zone after forming a robust base round Rs 2,200–2,300.

It was the primary signal of pattern reversal on the smaller time-frame, which was adopted by some consolidation by means of the week. On Could 6, the counter noticed a sensible surge regardless of the broader market selloff.

With this resilient nature, the inventory has now confirmed a better prime, greater backside formation on the day by day chart. We advocate shopping for the inventory at round Rs 2,540– 2,530 for a buying and selling goal of Rs 2,660. The stop-loss will be positioned at Rs 2,440.

Ajit Mishra, VP-Analysis at Religare Broking

Muthoot Finance Futures: Promote | LTP: Rs 1,216.4 | Cease-Loss: Rs 1,290 | Goal: Rs 1,100 | Return: 10 %

Muthoot Finance has been buying and selling in a corrective part for the final 6 months and witnessed a contemporary breakdown from a declining triangle formation on the day by day chart.

It has additionally slipped beneath the assist zone of medium time period shifting common (100 EMA) on the weekly chart, additional including to the weak spot. We advocate creating shorts within the vary of Rs 1,225-1,235 ranges.

Tata Motors Futures: Promote | LTP: Rs 411 | Cease-Loss: Rs 432 | Goal: Rs 385 | Return: 6 %

Most auto shares are witnessing stress and Tata Motors is buying and selling in sync with others. It has been regularly drifting decrease after the breakdown from a consolidation vary in February 2022.

After the failed try and cross the trendline, it was hovering in a variety and witnessed a contemporary breakdown beneath the main assist zone of long run shifting common (200 EMA) of late. We thus advocate creating shorts on an uptick inside Rs 414-418 zone.

ITC: Purchase | LTP: Rs 267 | Cease-Loss: Rs 255 | Goal: Rs 285 | Return: 7 %

Regardless of the continuing correction, ITC has been holding strongly above the assist zone of brief time period shifting common (20 EMA) on the day by day chart and inching regularly greater.

It has fashioned a robust base round Rs 255 and is more likely to keep the prevailing constructive bias. We advise initiating contemporary longs inside Rs 263-266 ranges.

Disclaimer: The views and funding suggestions expressed by funding specialists on Moneycontrol.com are their very own and never these of the web site or its administration. Moneycontrol.com advises customers to verify with licensed specialists earlier than taking any funding choices.

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