There was a massive mandate to the incumbent party as the Bharatiya Janata Party (BJP) hit another historic benchmark by nearing the 300+ mark with the NDA clinching the 345+ mark. This was much more than what the market was expecting.
For markets, this means the smooth functioning of the existing policies, framework, economic activities and so much. This is a big thumbs-up, which means that all the work that has been in place for the last few years would continue to function.
The Nifty50 hit a new all-time high of 12,041 but ended the day on the back of profit booking, which was largely on expected lines.
Equity markets have discounted the Modi verdict in the last few months. Though the tub-thumbing victory may need to be digested by markets.
Derivatives data pointed to a range bound action, and that is what we have seen with Nifty not able to surpass 12,100 while it may continue to take support around 11,500. We have seen both calls and puts being hammered today amid declining volatility.
In the next few days, there may be some sideways movement between 11,450 – 11,800 levels. One should still utilize the dips for a potential short term upside to 11,900.
It is time to be aware that there is a selling pressure around the 12,000-mark, and it is the third time we have not been able to hold above 11,900.
Here is a list of top three stocks which could give 2-4% return in intraday trade:
BF Investment: Buy| LTP: Rs 255| Target: Rs 267| Stop Loss: Rs 251| Upside 4 percent
The stock outperformed well with higher volumes. The stock witnessed a breakout on the daily chart as it gave closing above the 200-EMA on the daily chart. We recommend buying the stock above Rs 254 for the target of Rs 267 and a stop loss of Rs 261.
Century Textiles & Industries: Buy| LTP: Rs 991| Target: Rs 1,005| Stop Loss: Rs 990| Upside 2 percent
The stock has been trading with negative bias with average volumes for the past few days. It has found a strong support near the trendline on the daily chart.
The RSI is also showing upside moves in the upcoming sessions. We recommend buying above Rs 997 for the target of Rs 1,005 with a stop loss of Rs 990.
Union Bank of India: Buy| LTP: Rs 70| Target: Rs 71.50| Stop Loss: Rs 69| Upside 2 percent
The stock is trading at the support level on the daily chart of the trendline. The RSI is also at the oversold level. It also formed a Doji on the hourly chart. We recommend buying above 70.50 for the target of Rs 71.50 and a stop loss of Rs 69.
(The author is CEO, Epic Research)
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!