Dullness of D-street: Ahead of a weekend deadline for the imposition of additional US tariffs and Britain's elections
The flag end bulls managed to bring the Nifty to a positive note above 11,900 on Wednesday but most of the stocks are trading with a negative bias. On the global front, Asian Development Bank (ADB) on Wednesday trimmed its forecast for India's economic growth in 2019-20 to 5.1 per cent as consumption was affected by slow job growth and rural distress aggravated by poor harvest. On the domestic horizon, public and private sector banks have reduced the marginal cost of lending rate (MCLR) up to 20 basis points in the past week to transfer cost benefits to the end consumers and pressure of fiscal slippage is rising due to revenue shortfall, so we are expecting GST Council may increase rates for various items on its next meeting on December 18.
The coming trading session will be volatile to some extent. Hence it is recommended that one hedge his trades rather than continue naked trades.
In the current market scenario, we can see some upside movement in the following stocks:
Buy POLYCAB above Rs 1016
Target: Rs 1,110
Stop loss: Rs 960
The stock is in strong trend with the support of 200 EMA. Breaking the immediate resistance of 1,016 will bring an upside momentum in the stock. Considering the technical evidence discussed above, we recommend buying the stock above Rs 1,016 for the target of Rs 1110 keeping a stop loss at Rs 960 on closing basis.
Buy AFFLE above Rs 1451
Target: Rs 1,520
Stop loss: Rs 1,410
The stock is showing signals of reversal from lower zones, with the support of 200 EMA. Breaking the immediate resistance of 1,451 will bring an upside momentum in the stock. Considering the technical evidence discussed above, we recommend buying the stock above Rs 1,451 for the target of Rs 1,520, keeping a stoploss at 1,410 on a closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.