Equity markets bade farewell to 2017 on an emphatic note & closed near to its life high. If fact, Nifty Midcap 50, Nifty 100 as well as a host of other sectoral indices like Nifty Auto, Nifty IT etc indeed closed at their life highs previous Friday. This leaves no doubt about the overall bullishness of the market. We observe it to be a liquidity driven rally & most of the funds are coming from domestic institutional investors (DIIs) whereas FIIs are largely muted. Intermediate demand zones lie in Nifty in 10455 zones & any pull back next week could be a buying opportunity with this level as stop loss. However, we also observe a small-bodied star formation on weekly candle chart in Nifty which might invite short term weakness if 10450 gets broken.
Maruti happens to be one of the super-achievers of 2017 & its stellar performance is likely to be extended in the coming months as well. We find that after making a new lifetime high just below 10000 mark on 3rd week of December, Maruti slipped into a pull back phase. However, it is now coming out of its little pull back & embarking on resumption of the primary uptrend. Buy with stop 9600, target 10080.
This consumer goods stock is one slow but steady performer and boasts of a fundamentally driven primary uptrend, which is steady & reliable in the long term. We recommend buying V-Guard on pull back to 240 regions with stop loss at 233 7 target 251.
Riding on soaring gold prices, Titan is embarking on a new uptrend. One can keep a long position in Titan with 840 & target 870.
Tata Elxsi has broken out from a two month consolidation phase on Friday. We believe, this stock is a potential winner in coming months as its primary uptrend has got a new lease of life. Buy on little decline to 965 with stop loss at 940 and targets at 1003, 1030.