Nifty (CMP: 10604)
Last few sessions witnessed continuous sell off as Nifty broke its 200 day average quite convincingly & also the floor of 10650 (on closing basis). We should now approach the market as one to sell on rises, resistances exist at 10690, 10770 & 10854 regions. The outlook for next week therefore remains negative although some short term dead cat bounces could take place but we are not expecting the resistances as mentioned above to be taken out easily.
(Sell) BEML (CMP: 756.55)
BEML has recently seen some serious sell off followed by pull-back and resumption of primary downtrend. The stock is in a bear’s grip for long time & also underperforming the index, thus qualifying for shorting. Resistance exists at 767 & 780 regions and this might be a good opportunity to go short in this infrastructure stock.
(Buy) Reliance Inds (CMP: 1216)
Although there is a short term weakness in Reliance, yet this IT major is continuing to show promise in terms of holding on to its longer term uptrend. CNX Energy index and especially Reliance Inds is in fact outperforming many stocks within Nifty in intermediate term. One may therefore initiate a long position in it on pull back to 1210 regions with stop loss at 1184 & target 1255.
(Buy) Inox Leisure (CMP: 273)
With a primary upward trend and reduced volatility, Inox presents a good buying opportunity in near future. The stock has broken out of a major resistance area at 253 regions & looking poised for higher prices ahead. Inox closed at 273 & one may buy it on pullback to 265 regions with stop at 257 & target 290.
(Sell) Eicher Motors (CMP: 20409)
Auto happens to be one of the weakest sectors & Eicher Motors is a notable underperformer in this sector (Others are Ashok Leyland, Maruti, M&M, Exide Inds, MRF etc). Prices are trading below 200 day averages & the stock itself has been in the process of making l.lower top formation on daily chart. We therefore recommend selling Eicher Motors on rise at 20600 with stop loss at 20970 on closing basis & target 20060.
