09 Jan , 2022 By : Kanchan Joshi
Indian equity markets turned volatile after Thursday’s sudden change in sentiments. Nifty50 rallied up to 17,905 on Friday, however, soon erased early gains and fell to register a low at 17705. Eventually, Nifty formed an indecisive candle for the day and remained below Wednesday’s high. After a 9.4 per cent rally from the prior month’s low, Nifty50 is expected to traverse in a range between 17,600-18,000 to digest recent gains.
Bank Nifty formed a 'Doji' candle with a relatively large upper shadow. Sustenance below 38,000 is expected to trigger mild consolidation in the 37,000-38,000 range.
The FMCG index gained mild positive traction, sustenance could attract stock-specific rally.
The Smallcap 100 index is holding ground, hence a stock-specific rally is likely to continue.
Recommendations
Buy Bajaj Electricals Ltd near Rs 1,260
Stop loss: Rs 1,210
Target: Rs 1,360
After going through the short-term corrective phase, the stock has defended its 50-Day and 100-Day EMA. Positive follow-up action to the large bullish candle is likely to lift the stock to Rs 1,360 level.
Buy HUL 2400 January call option near 52-55
Stop loss: 19
Target: 110
After losing 23 per cent from its September month’s high, the stock is gradually trending up over the past few weeks. Sustenance above the level of Rs 2400 is likely to keep the near-term outlook positive.
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