Hot Stocks | Cochin Shipyard can give a 19% return in short term; a sell call for Hindalco, Voltas
Episode 2584, Jun 05, 2020, 12:30 AM
Nifty closed at 10,000 levels, up 32 percent from its March lows, and 12 percent from its recent May expiry lows.
The most underperforming sector PSU Banks too witnessed positive momentum during the ongoing week to gain 15 percent from last Thursday.
High beta sectors like Realty and Media gained 14 percent and 10 percent while mid-caps and small-caps also outperformed the broader markets.
Global markets have also witnessed a sharp recovery to bounce in the range of 35-40 percent since the beginning of the lockdown.
Major indices will face resistance as 38.2 percent is an important Fibonacci retracement number. The full-year results for FY20 is in the last leg of announcements so we do not expect any major newsflow in the coming weeks.
We believe there are multiple resistances in the range of 10,200-10,350 that are the recent highs and medium-term averages so the upside looks little capped on the higher side.
One should wait for some lower pullbacks to 9,600 levels to fill the gap area and witness a time correction over the next few weeks.