Tag: 秦皇岛兼职RD

Charts signal strong support for these two stocks; recent market correction may have bottomed out

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By Subash Gangadharan

Markets have corrected sharply in the last one week. A sharp bounce back in the last two sessions has however curbed the losses. Broad market indices like the BSE Mid Cap and Small Cap indices too have bounced back from close to their 50-day SMAs indicating a possibility that the short term correction is over and markets are ready to resume their intermediate uptrend.The Nifty, however, remains in a short term downtrend. This would reverse with a close above the recent highs of 13778. Immediate supports to watch for resumption of weakness are at 13432.With the intermediate uptrend still intact, we expect the recent correction to be more of a short term nature and may have possibly bottomed out with the strong price action seen in the last two sessions. It is important that the recent lows of 13131 are not broken for the intermediate uptrend to sustain.The below picks are for the next 15-26 trading sessions

After correcting from a high of 568 touched on 16th Dec 2020, Bharat Forge found support around the 492 levels yesterday. These levels also coincide with the 50 day SMA indicating that it is a strong support.The stock rebounded strongly in the last two sessions and made a higher bottom on the 15-minute intraday chart. In the process, there has also been a moving average crossover as the 20 period MA has crossed above the 50 period MA on the 15 min intraday charts. This augurs well for the short term uptrend to continue. We, therefore, recommend a Buy between 530 and 540 with a SL at 510 and Target of 600. CMP is Rs.538.Buy State Bank of India

SBI has corrected sharply from a high of 276 in the last two weeks. The stock found support at the 248.3 levels and has made a hammer pattern on the daily charts on 22nd Dec 2020.On Friday, the stock closed above the 20 day SMA, indicating that the bulls are gaining control. Zooming into the 15 min intraday charts, we notice that the stock has moved higher in the last two trading sessions and made a higher bottom in the process. This augurs well for the bullishness to continue.We, therefore, recommend a Buy between 260 and 263 with a SL at 255 and Target of 280. CMP is Rs.262.8.

(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. The views expressed are the author’s own. Please consult your financial advisor before investing.)

Focus on IT, Pharma, FMCG, and select PSU stocks; commodity bull run entering last leg now | INTERVIEW

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The second wave of the coronavirus pandemic might not result in significant correction for Sensex and Nifty unless it lasts for a couple of months, said Amit Jain, Co-Founder and CEO, Ashika Wealth Advisors in an interview with Kshitij Bhargava of Financial Express Online. Amit Jain, the market experts with nearly two decades of experience, believes IT, Pharma, and FMCG are some of the sectors where investors could focus on, expecting robust bottom-line numbers. Further, Jan believes that in the post-pandemic world India could become the manufacturing hub for the world. Here are the edited excerpts.

Q Stock markets are down from their all-time highs now, where are you spotting opportunities in this market?

Q Commodity cycle is the buzzword on Dalal Street, are you buying this argument that commodity stocks are entering a massive-bull run?

Almost six months back, we advised entry in commodity stocks and since then the NIFTY metal index is up almost 70% and individual stocks are up almost by 200%. In my view, this is the last leg of the bull run in commodities due to excessive money printing by the US Fed, which may last for another six to nine months. In my personal view, it is time to lighten the position in commodities in the short term.

Q India is witnessing the second wave of covid-19 cases. Although the vaccination drive is expected to pick up pace now, what implications, if any, do you see for stock markets if the second wave stretches longer?

Yes, You are right, the second wave is there, but in my view, it may be less fatal compared to the first wave, as now the world knows about the virus and is partially prepared to face it, unlike the first wave. If this wave stretches for a couple of months, then the market may have an excuse for a further significant correction. 

Q India has undertaken serious reforms during the last year and the economic outlook seems strong; what sectors do you believe are the best bet on India’s growth story ahead?

Yes, India took appropriate steps to boost the Economy during the Covid-19 pandemic, which has laid the foundation for a much stronger Indian Economy by 2030. In the post-Covid-19 era when the world is talking about “Social distancing” from China, all those sectors will be beneficiary in India where currently China dominates the World. In my view “India” may be the new manufacturing hub of the World by 2030, if the current pace of reforms continues. Indian may be a leading IT and Pharma exporter for the World Economy by 2035. The world has no alternative to India, as this is the only economy in the world that has both democratic and demographic dividend for the next fifteen years. This duo combination is rare in the world, hence the entire World Capital whether it is FDI or FPI, will chase India. Recently India has touched a new benchmark of $500 billion cumulative FDI investment, which reflects the commitment of Global Capital to India.

Q Bond yields are rising, does any further rise in yields pose a threat to FPIs pulling money away from the domestic market in large quantities?

Yes, US bonds yield has risen due to inflation fear from 0.51% in August 2020 to 1.71 % as on date which is 300% higher than August 2020 lows, however, it is still lower than 2.2% which it touched in the Dec 2008 post-Lehman Brother crash. In my view in the short term,  it may go back to 2.1%, however, in the long term, it will hover around 1.2 % to 1.8%. If this yield crosses 2% sustainably in the medium term, only then we have fear of FPI pulling out significantly from Indian Markets.

(The stock recommendations in this story are by the respective research and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)