Did you happen to see the Test match I was talking about? And is there any parallel with the market?
Rajesh Bhosale: Yes, I did watch the match. It was very interesting—and kudos to Washington and Jadeja, they helped to draw the game. It was a significant match. So, we still have a chance to draw the series.
If we look at the Nifty, the FMCG and some defensive sectors like pharma are helping the market hold on to key levels.
But the heavyweights are not supporting. In fact, from a technical perspective, last week we saw a major breakdown on the Nifty charts. A rising channel pattern as well as the 50 EMA was breached.So, unless we surpass 25,000, the markets are likely to remain under pressure. On the downside, 24,600 is the key level, which coincides with the 89 EMA. In the near term, we expect the Nifty to consolidate within the 24,600–25,000 zone.
Yes, the market certainly lacks that sense of spirit at the moment. But then, it’s clearly a stock-picker’s market, especially since we are midway through the earnings season. However, the results so far haven’t shown the kind of positivity one would hope for. What are the stocks on your radar right now?
Rajesh Bhosale: Yes, there are some counters that are definitely showing relative strength. They’re still trading around their 52-week or all-time highs. So, some of those could continue to perform well despite a lacklustre broader market.One of our picks is PEL – Piramal Enterprises. If you look at the stock, it had a strong rally in early July, moving from 1150 to 1350. Last week, we saw some price correction. Today, the stock is showing strength around its 20 EMA and has already crossed Friday’s high. So, we’re bullish on this counter and recommend a buy with a stop loss at 1260, targeting 1410.The second buy call is on HDFC Life. On the monthly chart, it has already given a strong long-term breakout. After some correction last week, it formed a bullish engulfing pattern, and this week we’re seeing follow-up buying. It has also crossed above the 20 EMA. So, we expect HDFC Life to resume its positive momentum. With a small stop loss at 750, we expect an upside target of 805.