Analyst: Dharmesh Shah, Head – Technical
The benchmark indices witnessed strong up move on Monday’s session as it recouped 80% of its previous three session’s decline (14,966-14,592) in just a single session, highlighting resilience. Going ahead, we maintain our stance of 15,400 in the coming weeks. A follow through strength above the upper band of the last four weeks’ consolidation (14,950) will lead to acceleration of the up move. Any corrective dips towards 14,600-14,700 should be capitalized to accumulate quality largecap and midcap stocks. We expect the broader market to continue with its relative outperformance amid progression of Q4FY21 earning season
Analyst: Dharmesh Shah – Head Technical
Analyst: Raj Deepak Singh, Head Derivatives
Buy M&M May futures
CMP: Rs 758
Target: Rs 805
Stop loss: Rs 730
- Auto stocks have significantly underperformed the markets in the last couple of months and witnessed selling pressure at every rise. Moreover, stocks like M&M have witnessed accumulation of short positions and current OI in the stock is highest in almost three months. As stock is reverting from its highest Put base of 750, a round of short covering is expected.
- On the higher side, the highest Call base for the stock is placed at 800 Call strike around which stock should find the first round of hurdle.
Buy ACC May futures
CMP: Rs 1,403
Target: Rs 1,470
Stop loss: Rs 1,360
- ACC has remained largely unchanged in recent market volatility and traded in the range of Rs 1850-1900 levels. Despite closure in the futures open interest, the rangebound move of the stock suggests inherent strength in the stock. We expect stock to continue its upward bias and retest its April highs in the short term.
- Even in the options space, the significant open interest at 1900 Call strike remained intact despite stock closing above these levels. We expect closure of these positions would trigger further up move in the stock.
Sell USD-INR at 73.50-73.60
Stop loss: 73.85
- Positive domestic equities along with choppy US
is likely to provide support to the INR.
- After appreciating for a few sessions, INR paused its trend. However, on bounce, 73.5 can act as a hurdle.
Buy EURINR at 89.00-89.10
Stop loss: 88.75
- EUR-INR reverted sharply from 88.8 levels as weakness in the Dollar index coupled with strong economic data provided support to the pair.
- EUR-USD continued to trade higher and recent news provided positive gains which helped EUR-USD to touch 1.21 levels.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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