Next week Market will look forward for trade deal between China & US - CapitalAim

Mr. Debabrata Bhattacharjee, Head of Research, CapitalAim

Nifty futures showed downside momentum early start of this week. After showing an Evening Star formation at the end of Previous week. Traders are encouraged for Shorts and as a result, nifty has seen a deeper correction at the end of this week. Nifty futures failed to sustained upper levels since the beginning of the week. In a short view, Nifty has to sustain at around 10700 level but the attack on CRPF on weekend created new sentiment towards downside in Nifty futures on the concern of Govt.'s hawkish stance. On Today's Trading session Nifty Opened on a negative note and remained corrective till closing. More shorts were created on breaking of every support level. As compared to the cash market, the futures market corrected more. This was happened due to a sentiment pull over the attack of CRPC caravan in J&K.

The market is also looking for a trade deal between China & US which is extended by Mr. Trump for more 60 days. This deal also creates uncertainty in the markets. Traders approach cautious note on everyday trade manages their trade with hedge positions in Options markets. For the days ahead one should be cautious ahead of govt's stance related to CRPC attack.

The Benchmark index Nifty50 has support zone at around 10600 to 10500, which is multi-day support since November 2018. Where it is likely if this range breaks we will hit 10200 in very short term.

Stock Recommendations for coming week.

BHARATFIN : BUY| At : Rs 930| Target: Rs 970-990| Stop loss: Rs 900|
BHARATFIN is bounce back from lower levels on Thursday's trading. It shows strength in counter with bullish candles, hence 970-990 is likely to be hit. RBI's interest rate reducing also benefited this counter in near term.

JINDALSTEL : BUY| Above : Rs 145| Target: Rs 154| Stop loss: Rs 138|
JINDALSTEL is consolidating between 123 on the lower side and 135 to the upper side. Stock is affected from International metals prices. As the ongoing trade deal between US and China comes to closer, there is a chance of buying in metal sectors.

BHARTIARTL: BUY| AT: Rs 302| Target: Rs 320| Stop loss: Rs 292|
BHARTIARTL the telecom giant is successfully borrow money from debt for it's ongoing operations taken stock to new high. From most recent weeks counter is trading in a range of 290 on the lower side and 320 on the upper side.