On Tuesday 28 September, there has been selling pressure in the domestic market due to the rise in Treasury yield. Oversupply in Treasury yields signals an uptrend in commodity prices and global investors start exiting emerging markets. Talking about the domestic market a trading day ago, when Nifty came below 17800, it showed tremendous selling pressure and it fell to the low level of 17576 contrary to the estimate. Bank Nifty also touched the level of 37315. However, there was a recovery in the afternoon and Nifty closed at 17748 and Bank Nifty at 37945. On the basis of Tuesday’s low level, further strategy can be decided and if it goes down, a decline can be seen.
On Tuesday, the market went below the 10-day SMA (Simple Moving Average) support level but Nifty was successful in closing above this level. Talking on the higher side, Nifty is facing strong resistance at 17800 and 17850 levels. Investors should close weak long positions at the resistance level till Nifty crosses the level of 17950. Pharma stocks can outperform in the medium term.
Sun Pharmaceutical Industries
BUY, CMP: Rs 775.1, TARGET: Rs 815, SL: Rs 757
On the monthly scale, except for a few trading days, this stock is having a great bounce. Right now the bullishness in this stock has stopped a bit, but the range in which it is trading, the counter is trading at its lower level, which means that from the current price, there is a possibility of further increase in it.
BUY, CMP 503.25, TARGET 530, SL 491
This stock has had a great rally in the last several months and still continues to rise. Due to higher high and high low pattern on the chart, there is a possibility of further strengthening of this stock in the near term.
BUY, CMP 163.7, TARGET 172, SL 159
This stock is forming a ascending triangular chart pattern on the weekly scale. There is a possibility of a breakout of this pattern in the coming trading days and after that there is a possibility of a jump in its price.
BUY, CMP 4003.65, TARGET 4205, SL 3920
After a spectacular rally, the price of this stock has declined. Its price correction can be seen as a great buying opportunity. This stock is getting support in the demand zone and in such a situation, the prices of this stock are expected to strengthen in the short term.
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. The Newz Indial takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)