We saw a protracted weakness in the past few trading sessions & Nifty finally closed 1.25% lower on weekly basis. However, given the primary bull market that we are in, there is no structural change in the technical evidences as yet and we continue to look for buying opportunities. For the next week, 10240 is going to be a significant make-or-break zone for the broader index. A close above 10370 will increase the odds of continuation of uptrend.
Grasim is one of the star performers in Cement sectors and after a brief pullback, it seems poised to resume the uptrend shortly. Buy above 1260 with stop loss at 1215 & target 1326.
Metals are showing considerable strength & Vedanta, along with Tata Steel, SAIL & National Aluminium is likely to outperform the broader indices in short term. One can therefore buy VEDL above 328 with stop loss at 318 and target 340.
Pharma sector is also outperforming at present and we recommend Cipla & Divi’s Lab from this sector. Cipla could be bought above 622 with stop 602 & target 648.
Non Banking Finance Sector is also in the shinning at present and Dewan Housing is brightest among its peers. Buy DHFL above 646 with stop loss at 637 & target 661.
