Emkay Global has provided four stock trading ideas for investors to consider in the current market climate. Amid recent market fluctuations, Emkay Global shares insights into potential buy and sell opportunities.
Market Overview:
Nifty 50 recently closed the week, month, and quarter with performances of -0.2%, 2%, and 2.34%, respectively. Despite a slow start to the week, the index displayed increased volatility towards the end. It has been trading within the range of 19,500-19,800, experiencing a 3.5% correction from its recent peak. The outlook remains positive as long as Nifty 50 remains above 19,500, with a further positive validation upon surpassing 19,800. However, a drop below 19,500 may trigger additional selling pressure down to the 19,200 level.
Sector Highlights:
- Pharma Sector: The Pharma sector found support at the lower end during a consolidation phase. Sun Pharma, a leading stock in this sector, exhibited a bullish development with a breakout from a 100-month rounding bottom pattern.
- Realty Sector: After a decade of underperformance, the Realty sector achieved an all-time high.
- IT Sector: On the bearish side, the IT index was the worst performer, experiencing a loss of 3%. The Index may face challenges down to the 31,200 level.
Trading Ideas:
- Apollo Hospitals (Buy): Target Price ₹5,800 | Stop Loss ₹4,800
- Apollo Hospitals shows promise in the healthcare sector, having recently broken out from a 72-week consolidation phase.
- The stock is rebounding from the oversold zone and the 100-period moving average, trading above its short-to-long term moving averages across all time frames.
- DLF (Buy): Buy around ₹528 | Target: ₹570 | Stop Loss: ₹510
- The Nifty Realty Sector reached an all-time high after a decade of underperformance.
- DLF has broken out following 75 trading sessions and is consolidating at a key support level.
- Sun Pharma (Buy): Buy around ₹1,162 | Target: ₹1,280 | Stop Loss: ₹1,100
- The Pharma sector experienced a time-wise correction but is now rising from the lower consolidation band.
- Sun Pharma formed a bullish 100-month rounding bottom, signaling a reversal.
- Fresh breakout on the daily chart indicates a bullish continuation sign.
- SBI Card (Sell): Downside Potential: ₹765 | Stop Loss: ₹805
- SBI Card has been trading within a symmetric triangle for over 100 weeks.
- The stock reacted bearishly after breaching immediate horizontal line support.
- Currently trading below short-to-long term moving averages, presenting a short setup with a target at ₹765.
Investors should carefully consider these trading ideas, evaluating their risk tolerance and market conditions before making any investment decisions.
