Nifty Outlook and top stocks for 2019 : Epic Research

Mr. Mustafa Nadeem, CEO, Epic Research on Market Outlook for 2019.

Nifty Outlook for 2019 and target

Technically, to define the trend for market is simple; It is bullish. On a longer term Timeframe we don't believe there is any violation of the basic rules to call it a top that is impeccable to breach. Though there is a cyclic component to this and that is related to macro events which generally precede a business cycle. Hence for 2019 we believe there is a potential consolidation/correction that may be trailed with positive momentum. So when moving forward the volatility and corrections may be more often since we are heading into an event while post event we may see some recovery which can be orderly seen. We expect range for market to be 11600 to 9400 so any dips toward lower range be utilized for an upside return.

Top 5 stocks which are worth a buy with a time horizon of 1 year for 2019.

Federal bank - CMP: 91, Target: 125 - 140, SL: 70

The stock is in a bullish trend, longer term, and recent correction in stock is an opportunity to enter the longer term trend hence utilizing the correction for a continuation move. The risk-reward looks favorable at this juncture of price action.

UPL Ltd - CMP: 760, Target: 950, SL: 700

The stock has ended its short-term correction on higher timeframe while prices are coming out of the recent correction phase and continue its long term. A positive cross in long-term MA's indicates the strength in trend and we believe it is an opportune moment to create long side position in the stock.

Raymond - CMP: 852, Target: 1140, SL: 720

A breakout from a declining channel which was almost seen for a year makes stock healthy at current levels. Given its overall formation of higher highs and lows establishes recent trough as a viable support and gives an indication for higher targets of 1140 - 1150.

Yes Bank - CMP: 179, Target: 254, SL: 144

The stock has corrected a lot from its all-time peaks and has seen the worst correction in the last 8 years since the financial crisis. A long-term established support line coincides with our support level established at 150 levels while a range-bound consolidation in last few weeks indicates a bottoming out formation. Stock can be accumulated with the defined risk of 144 and target of 254.

PFC - CMP: 90.5, Target: 135, SL: 65

The stock is in a sideways range since last 10 years establishing the lower range as around 70 and higher range around 160. A cyclic analysis makes this stock an investment bet for a year with lower support at 65 acting as a risk and range of 70 - 80 as a buying opportunity for the target of 135.

Source : Equity Bulls

Keywords