Nifty in short-term downtrend, but these two stocks may help investors pocket gains By Subash Gangadharan Markets slid down further this week before recovering sharply from the lows. The bounce-back happened from close to the 200 day EMA. Selling pressure again seen on Wednesday ensured it was a negative and volatile week. On the Daily chart, we observe that 200 day EMA has acted as a support during the recent fall as Nifty bounced back strongly from there. But short term trend still remains down as the Nifty has failed to fill the recent gap area and cross the recent swing highs. 14-day RSI too is in decline mode, indicating more short term weakness is possible. The below picks are for the next 15-26 trading sessions Buy Apollo TyresTarget: Rs 240 Apollo Tyres has shown relative strength this week. While the Nifty index has lost 0.78% this week, Apollo Tyre has gained 5.13% over the same time period. In the process, the stock has also broken out of its recent trading range on the back of above-average volumes. Zooming into the daily chart, we can also observe that the 20 day SMA has recently crossed above its 50 day SMA, indicating a positive moving average crossover. The stock is also trading above the 20 week SMA and weekly momentum indicators like the 14-week RSI too are in rising mode and not overbought, which augurs well for the intermediate uptrend to continue. We, therefore, believe the stock has the potential to move higher and take out its previous intermediate highs in the coming weeks. We recommend a buy between the 208-212 levels. CMP is 210. Stop-loss is at 195 while target is at 240. Buy Dr. Lal PathLabsTarget: Rs 3050 Dr. Lal PathLabs has recently reversed its short term downtrend when it crossed its previous swing high of 2843 recently. After taking a breather, this week the stock has again started rising and is now on the verge of taking out its recent highs. Technical indicators are giving positive signals as the stock trades above the 20 day and 50 day SMA. Weekly momentum indicators like the 14-week RSI have bounced back and are in rising mode now. With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 2780-2820 levels. CMP is 2799.85. Stop-loss is at 2680 while target is at 3050. (Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)
Last Friday, WTI and Brent slid 3% after strong U.S. jobs data raised concerns that the Federal Reserve would keep raising interest rates, which in turn boosted the dollar. While recession fears dominated the market last week, on Sunday International Energy Agency (IEA) Executive Director Fatih Birol highlighted that China’s recovery remains a key driver for oil prices.
“If demand goes up very strongly, if the Chinese economy rebounds, then there will be a need, in my view, for the OPEC+ countries to look at their (output) policies,” Birol told Reuters on the sidelines of a conference in India.Price caps on Russian products took effect on Sunday, with the Group of Seven (G7), the European Union and Australia agreeing on caps of $100 per barrel on diesel and other products that trade at a premium to crude, and $45 per barrel for products that trade at a discount, such as fuel oil.
“For the moment, the market expects non-EU countries will increase imports of refined Russian crude, thus creating little disruption to overall supplies,” ANZ analysts said in a client note. “Nevertheless, OPEC’s continued constraint on supply should keep the market tight,” they said.