Crude price and its impact will drive coming week market - Epic Research
Mr. Mustafa Nadeem, CEO, Epic Research
Nifty makes an inside day on the weekly chart indicating smaller range as the tug of war between bulls and bears tightens. The overall lacklusterless remains in the market since we are bounded by indecisiveness, fewer domestic and international cues and lower volatility. The Indian equity markets had an inside day; a range bound week that was well within previous week range though bulls had an upper hand of the range since they were able to safeguard the lower levels of 10700 - 10680 and taking Nifty above 10800 while closing the week on positive note.
The pattern on the weekly chart also looks akin to "Hammer" Pattern that indicates bullish sentiment. It is characterized by a long tail that is twice the size of the real body while a small upper wick with the close near the high indicates the strength of bulls. The momentum is seen picking up in Nifty Auto Space and IT while the Pharma has seen some mild profit booking. The Auto space was up due to positive numbers of Sales that were earlier announced.
The coming week, Fundamentally, a lot of events are lined up with critical importance and eyes on Inflation data which was previously at 4.87% along with manufacturing and IIP numbers which were 4.9% and 5.2% previously. All eyes will be set for the same given jump in crude price & its impact and much awaited RBI policy meet in August. Another rate hike may be called if there is a spike in inflation number to curb the rise in global commodity prices.
We maintain the Buy on dips strategy as far as 10700 is held on closing basis while the upside remains capped at 10900. A break of 10900 will call for 11100 marks as next pit stop while bears may get active below 10700 on a closing basis.
DRREDDY - Stock has retraced from highs and trading near to 200 SMA & EMA on the daily chart and it has trend line support too on the daily chart along with MA. We recommend buying around 2250 for the target of 2300 with the stop loss of 2230 on a closing basis.
JISLJALEQS - Stock was consolidating since 3-4 trading sessions with average volumes but today outperformed well with good volume and closed near to days high. It also formed bullish engulf on the daily chart. We recommend buying from the current level for the target of 85 with the stop loss of 76.
M&M - Stock is in pure consolidating from very long time with average volumes and it has formed higher lows on daily chart from past four trading sessions. We expect it should the bullish rally. We recommend buying above 928 for the target of 950 with the stop loss of 915.