We are trading in that 18,400 to 18,600 band and witnessing range bound movement? What is your outlook for the market?
Clearly markets are in a range and the recent correction actually halted at 61.8% Fibonacci retracement level. So I would not read too much into the recent correction, in fact on the flip side it was a good opportunity to initiate long positions on index. On the upside, the index can test levels of 18,660 and 18,750. I feel the entire month of December could remain range bound. As we approach the festive season, volumes are expected to dip and the range would diminish even further. So markets will remain range bound, maybe 18,400 on the downside is a strong support. I believe markets can test 18,660 to about 18,700 on the upside.
Let us get stock specific, tell us your recommendations at the top of this hour.
I have got a couple of buy recommendations. Bharat Forge is something which is looking very attractive on the charts. Yesterday, in fact, the stock did manage to pull back from the lows and today it is breaking out of the narrow consolidation phase. So on the upside, stock can test levels of Rs 905 with the stop loss at Rs 865. Traders can definitely look going long on Bharat Forge.
The second stock recommendation is from the cement pack and that is something which has continuously been outperforming. Ambuja Cement is something which I would prefer in the cement space. We are looking for a target of Rs 7550 on the upside with the stop loss at Rs 7050 on the downside.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
