As long as it trades below that level, the view will remain a cautious. Today is the weekend day, again we have a two days holiday and probably from Monday onwards again we are likely to witness some sideways momentum. So the view will remain cautious on the Nifty and the Bank Nifty as long as both the indices trades below their resistance zone.
For the Nifty, as I said, 18,100-18,200 levels, whereas on a downside the support has been shifted towards the 17,800 levels, below that level again we are likely to witness some sort of selling pressure or say the profit booking which might drag the Nifty towards 17,600 to 17,500 levels.
So as of now, the Nifty and the Bank Nifty are stuck in a very short-term range bound trading session. We are not getting either a breakout or the breakdown. It is in the consolidation phase as of now but definitely I will suggest this market will remain in such a way for a few more days or as long as it just is trading into the very short-term range as such.
But it is a stock specific market because good stocks, on a technical perspective are showing a very strong breakout level even though the market is witnessing a correction but the stocks are really doing very good on the technical front. So one should concentrate into the stock specific trading rather than doing trading the Nifty or the Bank Nifty and that is the view we are just giving to our clients.
So what will be your top ideas then?Today I am giving two buy call. One will be on Dalmia Bharat. This particular counter is just trading above its all moving averages say the 50, 100, 200 DMA. Yesterday it has given the breakout of the flag pattern which also gives a very positive indications, today we have seen a very good momentum on the intraday basis along with the decent volumes, currently the stock is trading at 1945 level. I believe it has a very good support at around 1910 so one can take a buy call at the current market price, 1910 will be the stop loss. I believe it has a very strong potential to reach up to 2010, 2020 levels.
Another buy call is on ITC. This particular counter is really doing very well from the last two months from January also. As soon as it has given the breakout of 340 levels, we have seen a very good momentum value with the good volumes and the strength is remaining intact even though the market was collecting. So I believe it has a very strong potential to reach up to 400 levels. One can take a long position at the current market price, keeping a strict stop loss of Rs 370 for a target of Rs 400.