Article based upon news available till 27.12.2020. OnlineTradeIndia.com takes no responsibility incase you suffer any financial loss. Traders must analyze before trading on the basis of these calls.
Nifty has a sharp recovery after hitting a low of 13192 initially last week. The up move is so strong that Nifty is now trading just few points away from lifetime. There are certain reasons that fuel this rally:
- Brexit clarity after both Britain & European Union reach agreement and now 2016 Brexit confusion comes to an end. This means now Britain will move free and can make policies for its own country.
- The United States economical package is near to climax as both Republicans and Democrats have finally reach an agreement that will result in more liquidity. Only hurdle is President Trump to increase the package size.
Nifty Technical Chart
A sharp v shape recovery can be seen in Nifty chart and now hovering around life time high at 13778 points. Incase Nifty breaks this level than it will head towards 14000 level. Any bad news can send Nifty back to 13131 level. As long as Nifty trade above this level trade should be on long side.
What risks are involved near by that can put pressure on Nifty?
- First risk is from US stimulus package that is getting delayed as President Donald Trump is putting pressure on Democrats to relook on agreed package and provide $2000 pay check to Americans from agreed pay check of $600. This means that still confusion is going on US stimulus to support the economy.
- Tightening lockdown in many European Nations to contain the corona virus in check is big issue as that can lead to slow recovery of Global economy.
Stocks with positive uptrend
1. Sun Pharma (CMP: Rs 590.45):
The stock is clearly in uptrend and one can enter the stock if it moves above Rs 595 level for a target of Rs 650. Stoploss is at Rs. 555. Theme for suggesting this stock is after lot of consolidation from Rs 500 to 590 level stock is beginning to come out from this range. Another theme is the stock belongs to defensive sector.
2. Axis Bank (CMP: Rs 610):
The stock is again started to move upward after hitting a recent low of Rs 568 and formed a paper umbrella pattern. One can go long with a target of Rs 630 and stop loss at Rs.568. Theme is Nifty banks are in strong rally and this stock will also move up incase Nifty banks move up.
3. Bharti Airtel (CMP: Rs 517):
The stock is consolidating in the range of 478 level to 525 level and now showing a good sign of resuming uptrend. Bharti Airtel again reclaimed no. 1 position in telecom sector as suggested by TRAI recent report. This suggest that Airtel Broad net has made the difference. One can add the stock above Rs 525 level and expect a target of Rs 550 in near future. Stop loss at Rs 475.
4. HDFC Bank (CMP: Rs 1397):
The stock is again started to move upward after hitting a recent low of Rs 1345 and formed a paper umbrella pattern. One can go long with a target of Rs 1450 and stop loss at Rs.1345. Theme is Nifty banks are in strong rally and this stock will also move up incase Nifty banks move up.
5. Hero Moto Corp (CMP: Rs 3073):
The stock is again started to move upward after hitting a recent low of Rs 2900 and formed a paper umbrella pattern. One can go long with a target of Rs 3156 and stop loss at Rs 2900.. Theme is Nifty Auto are in strong rally and this stock will also move up incase Nifty Auto move up.