By Riyank Arora
On Tuesday, the benchmark index opened with a gap up of around 47 points and fell nearly 187 points towards the closing. The Nifty ended 140 points lower, while the Sensex was up by 384 points.
Among sectors, the Nifty Realty Index led the fall, with FMCG stocks outperforming all other sectoral indices rising nearly 1105 points. Technically, the market is looking weak and should witness selling pressure on every rise.
22,350 to 22,400 zone should be considered as a strong selling zone with a strict stoploss at 22,500 for potential targets of 22,000 and 21,800 on the benchmark.
Stock Recommendations:
GODREJ PROPERTIES
BUY | CMP: 2781.00 | TARGET: 3000.00 | SL: 2725.00
The stock has undergone a significant re-test of the all-time high breakout zone, ranging from 2750 to 2775, on its daily timeframe charts. With the RSI (14) on the daily timeframe at 60, it is anticipated that the stock will gather momentum in the next few days and ascend towards potential targets of 3000 and beyond, with a set stop loss at the 2725 mark.
MGL
SELL | CMP: 1337.65 | TARGET: 1275.00 | SL: 1375.00
With volumes equivalent to its average (30-day) traded volumes, MGL witnessed a strong breakdown below its recent swing low mark of 1367.20 and managed to close below it.
The overall technical structure appears extremely weak, and the RSI, showing a minor uptick, has added momentum to the short side. Targets of 1275 and below are foreseeable for MGL. It is advised to maintain a strict stop loss at 1375 to manage risk effectively.
Godrej Consumer
CMP: 1322.35 | SL: 1280.00 | Target: 1400.00
The stock experienced a strong breakout above its all-time high mark of 1314.00 on both its daily and weekly charts. With the RSI (14) hovering around 71 and showing a minor uptick, the overall momentum appears robust.
Trading volumes for the stock were nearly 8 times its average (30-day) traded volume, indicating significant interest. Overall, the stock now appears poised for an upward move towards 1400 and beyond. It is advisable to maintain a strict stop loss at the 1280 mark to manage risk effectively.
(Riyank Arora, Technical Analyst, Mehta Equities. Views expressed are author’s own. Please consult your financial advisor before investing.)