Previous week’s movement in Nifty was grossly insignificant and we are still waiting for a decisive break out above 9990 or below 9855 to get the next directional movement of the index. However, the market breadth has not turned negative & there is nothing to suggest that the intermediate uptrend has ended as yet. One should maintain strict stop loss at 9780 for any long position in the market.
This is a primary upward trending stock for the long term & all pull backs are opportunities to buy. The stock is currently going through one such phase of short term weakness & warrants a buy above 3990 with stop loss at 3940.
Bharti Airtel is another stock with a primary uptrend but mired in short term weakness which in fact gives a splendid opportunity to buy. Enter long at CMP & keep stop loss at 395.
It is one of the few outperformers for the past several weeks. While Nifty is still way behind its life high of 10140 regions, and in fact loitering in a trendless phase for the past three weeks, Torrent Power made a new life high on Friday and did not show much weakness even during the sporadic sessions of intraday sell offs. We recommend buying Torrent Power 50% at CMP 221 and add the remaining 50% at 215 with a final stop loss at 209.
On Wednesday, Muthoot Finance put up a brilliant break out from a three month old consolidation zone with strong volume. Since then, it has retraced a bit and now testing the support zone of 480-465 odd levels. We recommend a buy with stop loss at 470 & target 530.
