Podcast | Stock picks of the day: 'Nifty likely to be in 11,549-11,856 range; avoid aggressive positions'

Traders are advised not to take any aggressive positions till the time we remain trapped in the mentioned range. At such time, a stock-centric approach becomes the more pragmatic approach.

Last week, Nifty clocked a new record high of 11,856.15. However, it turned out to be a formality as there was no follow-up momentum seen to extend the rally.

On April 26, market gave a hint of profit booking and a similar sort of decline was seen on the first day of the week gone by.

Some macro factors like Brent Crude rising beyond its key levels of $73-74 weighed heavily on traders’ sentiments. Fortunately for us, the damage was not as severe as it looked like at one moment.

Due to some smart recovery in the latter half, Nifty managed to reclaim the 11,700 mark at the end of the week. There is a famous saying, all’s well that ends well and it goes perfectly with last week’s price development.

Firstly, we successfully managed to defend the key support of 11,549 and then went on to close well in the safe territory by reclaiming the 11,700 mark.

Now, at his juncture, we do not have signals that will provide us a proper trade set up. But, since the broader trend remains bullish, we continue to remain upbeat on the market as long as it holds 11,549, convincingly.

On the higher side, 11,800 followed by 11,856 are the levels to watch out for. If we see any renewed buying interest in some of the heavyweight constituents, we would expect index to hit fresh highs very soon.

Till that time, consolidation is likely to continue in the range of 11,856-11,549.

Traders are advised not to take any aggressive positions till the time we remain trapped in the mentioned range. At such time, a stock-centric approach becomes the more pragmatic approach.

Here are two stocks that could give 6-10% return in the next 1 month:

MCX India: Buy| LTP: Rs 839.20| Target: Rs 925| Stop Loss: Rs 790| Upside 10%

This stock has been consolidating since the last 5-6 months and was struggling to cross its sturdy wall placed around 820. During the early part of March, stock prices started giving sharp rallies with more than average daily volumes consistently.

On Friday, we finally see this stock surpassing the multi-month hurdle of 820 with some authority; courtesy to its quarterly numbers which clearly propelled this move.

More importantly, this price development was backed by humongous volumes which provided credence to the rally.

Hence, we recommend buying at current levels for the target of Rs.925 and a stop loss should be fixed at Rs.790.

Grasim Industries: Buy| LTP: Rs. 913.45| Target: Rs 965| Stop Loss: Rs 886| Upside 6%

Of late, the entire ‘Cement’ pack is on a roll and this week, excellent quarterly numbers from ‘UltraTech Cement’ has provided impetus to the rally.

Grasim is the holding company of the UltraTech cement had a rub-off effect of this gigantic move. In this course of action, we finally witnessed a breakout from the ‘200 day SMA’ around 880 with a substantial rise in volumes.

Due to some profit booking, the stock has come off a bit. But we would rather interpret this as a good buying opportunity. Thus, we recommend buying at current levels for a target of Rs.965 and a stop loss should be fixed at Rs.886.

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