From a fundamental perspective we see the markets pretty mature and the undertone remains bullish. But what suggests the technical image? We closed under 24,400, and this was a week in which we violated various important support levels at the disadvantage. How do you see the indices performing in the upcoming sessions?
Shidangi Sarda: Yes, rightly called it has been a roller coaster week. But in general the markets have grown up and have responded reasonably well. We have seen some stickiness at the lower levels, with buying interest that appears in the vicinity of support zones earlier this week. Towards the end, however, we violated those crucial support levels.
That said, given the global headwind with which we are confronted, the fall is relatively enclosed, which indicates a pillow to the disadvantage for the handy indices. Yet this marks the fifth consecutive week of the formation of the lower layer, and the weakness continues to exist. We have almost wiped out the win that have been made since May and are now back at those levels.
Looking ahead, the market seems to be entering a profitbook phase. The 24,000 Mark will act as an important level of support, which is currently not probably broken. At the top, resistance is expected around 24,500 and then at 24,700. On call writers have also shifted their positions lower, but in general we may see that a purchase interest will again appear at lower levels.
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Different shares performed well on the back of strong quarterly results. For example – Titan, Lic and Kalpataru projects. These shares saw positive movements, even in this volatile environment. Do you really like them?
Shidangi Sarda: Yes, this space has picked up Momentum and we have seen that buying something from the lower levels comes forward. Among this, Titan remains my favorite choice. With the festive season we expect a healthy increase in volumes.
We also discussed Titan earlier this morning – it has shown consistent purchase interest in the past four months. Even a week to week, the recovery of earlier losses is recovered and acts well above its 50-day exponential advancing average. Titan looks pretty strong for an immediate target of £ 3,600 and possibly higher in the medium term. The level of support to view is £ 3,400.
Some other shares also showed strength during the session – NNTPC rose by approximately 1.5%and Cummins India also performed well. Technically, what suggest the graphs for these names?
Shidangi Sarda: NTPC has made a good comeback today and has risen reasonably well. In the past three months, however, it has been shown a matt movement. Every small recovery is followed by profit booking. I would be a bit careful here is a waiting for me. A persistent movement above £ 340 would again make it interesting from a new buying perspective with a good attitude of the risk.
On the other hand, Cummins India looks very positive. It has been strong for quite some time and has been consistently higher tops in the past six months. That is a clear sign of persistent purchase interest. Today it also closed close to the high of the day with strong price volume promotion. The momentum seems to continue. We see £ 3,950 as the direct target and £ 4,100 positional, with support at £ 3,750.
What are your trade ideas for the coming week?
Shidangi Sarda: I have identified a few names from the smaller bank space that did well. Such shares is Indian Bank. Despite the weakness in the bank index, this share has demonstrated resilience. It was consolidated in the last three months and now breaks out that reach. Although the just below an important resistance zone closed, the momentum is strong and has maintained well despite market volatility.
We focus on £ 675 in Indian Bank, with a support level at £ 638.
Moreover, some consumption shares also look promising – and at the top of my list is still Titan, which remains very attractive.
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