Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessMarkets

'Dabur India, Colgate Palmolive top buys in volatile market conditions'

Going forward, we expect volatility to remain high in the near term and maintain our cautious stance on Indian markets

August 06, 2019 / 10:58 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Ajit Mishra

The market slid sharply lower last week and lost over two and a half percent, in continuation to prevailing corrective trend for the week ended August 2.

The Indian markets started the week on a negative note led by on-going tensions in Kashmir and unsupportive global cues. However, the Nifty reversed some of its losses but still ended lower by over 1 percent at 10,862 levels.

Going forward, we expect volatility to remain high in the near term and maintain our cautious stance on Indian markets.

Given the comforting inflation data and declining growth, expectations are rife for a fourth consecutive rate cut of 25bps by RBI in its policy meeting on August 7.

However, the commentary on growth and inflation would be a more important factor in deciding the course of the markets. Further, on-going turmoil in Kashmir may induce volatility in the markets.

On the global front, escalating trade tensions between the US and China will keep market participants on edge and cause volatility in oil prices as well as currency.

Nifty has almost engulfed all the gains of this calendar year and breakdown below 10,750 could further worsen the situation. In case of a rebound, we feel it would find hurdles at 11,100 and 11,250.

Indications are in the favour of marginal rebound first prior to any further fall but sustainability at higher levels seems difficult.

We advise continuing with the stock-specific trading approach and keeping positions on both sides as volatility will remain high.

Here is a list of top 3 stocks which could give 4-8% return in the next 3-4 weeks:

Dabur India Ltd: Buy| Target: Rs 450| Stop loss: Rs 420| Upside: 4.9 percent

We are seeing a mixed trend in the FMCG space, but Dabur India continues to trade strong amid volatility.

It has witnessed a marginal dip of late and is now hovering in a narrow band while holding firmly above its support zone of multiple moving averages on the daily chart.

We advise using this as a buying opportunity and initiate fresh longs as per the given levels of Rs 426-429. It closed at Rs 429.60 on August 5, 2019.

Colgate Palmolive (India) Ltd: Buy| Target: Rs 1,250| Stop loss: Rs 1,160| Upside: 5 percent

After a marginal correction from its record high, Colgate Palmolive has been consolidating around the support zone of multiple moving averages on the daily chart and now looks all set for a surge.

The chart formation and confirmation indicators are also pointing towards the same. We advise initiating fresh longs as per the given levels of Rs 1,185-1,190. It closed at Rs 1,194.35 on August 5, 2019.

DLF Ltd: Sell Futures | Target: Rs 155| Stop loss: Rs 175| Downside: 8.8 percent

DLF has been trading with a negative bias for more than a year and there’s no sign of reversal. After struggling around the resistance zone of multiple moving averages on the daily chart, it has posted a fresh breakdown of late and likely to see fresh fall ahead.

We advise creating fresh shorts as per the mentioned range of Rs 168-170. It closed at 165.55 on August 5, 2019.

The author is VP-Research, Religare Broking Ltd.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Moneycontrol Contributor
Moneycontrol Contributor
first published: Aug 6, 2019 10:58 am

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!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347