Stock markets were in a range last week and consolidating within a range. There are no major events to give a clear breakout for the markets and nifty might open in the negative taking the global cues into consideration as SGX Nifty is suggesting. CAD numbers in the evening might give a positive surprise to the markets as Gold imports should be factored in.However, we believe that markets might test the level of 5500-5600 in this week. The breakout might be possible once the results season is started on October 11 with the numbers of Infosys.
However, today the markets would open in red as suggested by SGX Nifty and might try to get into positive. However if the Nifty is unable to hold 5800-5820 levels, a major sell off might come into the markets.
Here are some trading picks for the week
BHEL
This stock was a star performer in the last few trading sessions. However, there are no such complete positive's visible for the company that would lead to re-rating. So this would be one of the stocks to go short if the markets test 5600.
Targets - 135.5/130/125
CMP - 143.75
SL - 154
We recommend to go short in the stock in the range of 140-147
If the stock opens positive,it would be a better opportunity to go short.
ITC
Though ITC is a very good stock, we see some profit taking might come into the sector and stock as well.
Targets - 335/320/308
CMP - 347.9
SL - 360/355
We recommend to go short in the stock in the range of 343-352
As metals stocks have seen a huge rally from the last 2 series, this is the time to take some profits from the sector and this stock specially.
Targets - 111/105.6/99
CMP - 113.9
SL - 120.5
We recommend to go short in the stock in the range of 112-117
We will update the blog with other picks and also the updates. If the stock moves into profit, we recommend to trade with a trailing stop loss to lock profits. Please trade with a proper stop loss and money management. We would love to hear comments and views from you.
Happy Trading,
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