Markets took a breather last week and ended with marginal loss as participants preferred to book some profit after the recent surge. The beginning was upbeat, taking cues from encouraging GST collection numbers.
However, profit taking in the following sessions not only eliminated the gains but also pushed the benchmark in red. A mixed trend was witnessed on the sectoral front while the broader indices ended lower by over 1 percent each.
Among the benchmark indices, the Nifty50 finally settled at 11,870.65, down by 0.44 percent after making a new record high at 12,103.05.
This week, participants will largely be eyeing the progress of monsoon and macroeconomic data. On the macroeconomic front, IIP and CPI inflation data are scheduled on June 12 and WPI inflation data on June 14.
Besides, global cues, crude oil movement, and currency movement will also be on their radar. Indications are pointing towards consolidation in Nifty within 11,600-12,000 range.
Meanwhile, the movement on the stock-specific front would keep the participants busy. Needless to say, volatility is the new normal, so managing positions would be the key ahead. We advise keeping positions on both sides, citing mixed trend on sectoral front.
Here is a list of top three stocks which could give 5-7 percent return in the next 1 month:
Apollo Hospitals Enterprises: Buy| Target: Rs 1,480| Stop-Loss: Rs 1,330| Upside 7.2 percent
Apollo Hospitals witnessed s steep rise after spending nearly four months around the support zone of long-term moving averages.
Currently, it has taken a pause and offers a fresh buying opportunity to those who missed earlier. The chart pattern and oscillators are also indicating further up move. We advise initiating fresh longs within Rs 1,370-1,380.
Bata India: Buy| Target: Rs 1,500| Stop-Loss: Rs 1,375| Upside 6 percent
Bata India has retraced marginally from its record high and consolidated within a 100-point range of Rs 1,300-1,400 for nearly a month. On June 10, it has posted a breakout from the same with a decent rise in volumes. We advise accumulating as per the mentioned levels of Rs 1,405-1,415.
Tata Steel: Sell June Futures| Target: Rs 465| Stop-Loss: Rs 504| Downside 5.5 percent
Most of the metal counters are reeling under pressure, and Tata Steel is no different. After a sharp decline, it witnessed a marginal bounce but couldn’t surpass the major hurdle of multiple moving averages on the daily chart and drifted lower. Indications are in favour of further decline in the near future. We advise initiating fresh shorts in the given range of Rs 492-496.
(The author is President – Retail Distribution, Religare Broking Ltd)
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