On 8th May 2020, Nifty opened Gap up at 9376.95, made a high of 9382.65, low of 9238.20, and finally closed at 9251.50. Weekly market outlook for the week starting 11 may 2020 looks negative.
Even though Nifty opened gap up and closed in green, overall market breadth was negative, and nifty daily candle also made a red candle.
From 24th march low of 7511, we made a high of 30th April of 9889. This looked like a corrective rally, and the next wave of downside can start soon ( or may have already started).
Weekly Market outlook for Nifty: 11 May,2020
You should be very cautious if you are talking positional long positions, as market volatility may increase in days to come.
The sectors which are looking very positive are Pharma, FMCG, and telecom. Some stocks which can be bought in dips are Astrazen, TorrentPharma, Sun pharma, HUL, Nestle, Bharti Airtel.
Most of the sectors are weak. Banking is one of the weakest counters. PSU banks can continue to fall further. Top stocks to short are SBI and Canara bank.
As can be seen from the 30 mins chart of Nifty, 9200 is major support. If it is broken, then we will surely head for further downside.
This view will be negated if Nifty breaks the upper line, which is placed at 9280.
Stocks analysis for the Week
1. Bharti Airtel: Buy in the range of 525-520 with stop loss below 515 and target of 570
2. Astrazen: Buy in the range 3000- 2950 with a stop loss of 2700 and target of 3500
3. Canara Bank: Sell at 80-81 with a stop loss of 85 and target of 65
4. TataChem: Sell at 284-286 with a stop loss of 291 and target of 255
Few stocks to keep in your watchlist are Voltas, TorrentPharma, Powergrid, Kotak Bank, Bata India