Amidst huge volatility and a global stock market meltdown, the broader market in India declined nearly 2.80% week-on-week, but surprisingly, the Midcap indices outperformed the large caps. With this, Nifty closed below its 50 day moving average for the first time in 2018 and we see the intermediate uptrend weakening & which will reverse upon violation of 10249. The 200 day moving average is at 10050 regions and the primary trend will turn down if this level gets breached. On the other hand, if Nifty manages to ascend over 10700, the odds of strength returning will increase.
This FMCG behemoth is likely to outperform next week provided Nifty does not break the 10300 odd levels. In that case, one could buy Hind Unilever above 1340 with stop loss at 1305 & target 1390.
The formation of higher tops & higher bottoms, the classic uptrend pattern is quite visible in the daily chart of KPIT, which have also been a relative outperformer in recent period. One may therefore buy this midcap IT stock on little pullback to 205 regions with stoploss at 288 & target 230.
The uptrend continues unabated for this small cap auto component manufacturing unit. One can buy Wheels India at CMP 2193 with stop loss 2065 & target 2350.
TCS is a yet another upwards trending stock at present experiencing pull back. We recommend buying TCS above 2995 with stop loss 2945 & target 3065.