The Economic Times daily newspaper is available online now.

    Investors can book profits in these 5 PSU banks that rose over 50% last week: Kunal Shah

    Synopsis

    The chances of a recession in the US post the fed outcome added fuel to the fire. The markets are likely to remain under pressure in the near term.

    kunal shahETMarkets.com
    The lower-end support is visible at 225 which will act as a cushion for the bulls and the upside visible targets are 266/275.
    “The PSU Banks have witnessed a spectacular rally in the past couple of months. The smaller players were the last to join the rally and have reached a critical resistance point. The risk-to-reward ratio is not favorable currently on the long side," says Kunal Shah, Senior Technical Analyst at LKP Securities.

    In an interview with ETMarkets, Shah, said: “The people who are already holding long positions should book at least 50% of their profit and those who have missed the rally should wait for a decline of a minimum 5-10%” Edited excerpts:

    Bulls failed to remain in control of D-St and closed lower for the week ending 16 December. Is it just the recession worries or profit booking which led to the price action?
    The global markets went into turmoil post the key FED event where the chairman said that the interest rate hike cycle is likely to continue.

    Unlock Leadership Excellence with a Range of CXO Courses

    Offering CollegeCourseWebsite
    IIM LucknowIIML Chief Operations Officer ProgrammeVisit
    Indian School of BusinessISB Chief Technology OfficerVisit
    IIM LucknowIIML Chief Executive Officer ProgrammeVisit
    The chances of a recession in the US post the fed outcome added fuel to the fire. The markets are likely to remain under pressure in the near term.

    We are approaching Christmas in the coming week. Would we see a Santa rally?
    Historically the second half of December is seen as low-volume data as the FII goes on a holiday.

    The markets are likely to consolidate in the near term and there will be no trend line moves on either side because of lack of volumes in the market.

    The market may resume a rally post that, with the budget in the eye for the Indian markets.

    What should investors/traders watch out for in the coming week? Any important triggers?
    All the major events are behind us and now, especially now the Indian markets will be looking at 2 key triggers. One is the result season which kick starts next month and the other is the budget which the market will be eyeing.

    What important levels one should track in the coming week for Nifty and Nifty Bank?
    For Nifty the key level to watch on the downside will be 18100-18000 and on the higher end, 18500-18600 will act as resistance.

    For BANK NIFTY the immediate support is at the 43000-42800 zone and the resistance is visible at the 43800-44000 zone.

    Consumer durables, FMCG stocks took a hit – what led to the price action?
    The inflation concern once again came into the limelight post the fed event and that led to a correction in the FMCG stock all over the world.

    With a rising interest rate scenario, this is likely to add some selling pressure on the FMCG space.

    5 stocks that rose more than 50% in a week include names like Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank, and UCO Bank. What led to the price action, and should investors buy more at current levels or book profits?
    The PSU Banks have witnessed a spectacular rally in the past couple of months. The smaller players were the last to join the rally and have reached a critical resistance point. The risk to reward ratio is not favorable currently on the long side.

    The people who are already holding long positions should book at least 50% of their profit and those who have missed the rally should wait for a decline of a minimum 5-10%

    Any 3-5 trading ideas for the next 3-4 weeks?
    Here are some trading ideas:

    Mawana Sugars: Buy at Rs 95| LTP Rs 99.40| Stop Loss Rs 85| Target Rs 107 /113| Upside 14%

    Mawana Sugars has witnessed a strong breakout in all the time frames with a sharp surge in volumes. The stock has surpassed its 200-DSMA along with other short-term moving averages which confirms the change in trend.

    The momentum indicator RSI has also given a positive crossover which confirms the buy signal. The lower-end support is visible at 85 which will act as strong support for the bulls.

    Oberoi Realty FUT: Sell at Rs 870| 879| Stop Loss Rs 920| Target Rs 820/800

    Oberoi Realty has given a breakdown from a rising trend line with the rise in volume confirming the change in trend. The momentum indicators are in the strong bearish zone which confirms the weakness in the stock.

    The stock has breached its 200-DMA as well which will lead to further selling pressure on the downside. The bears have found control around the 900-920 zones and the momentum is likely to continue on the downside, towards the 820-800 zone.

    HPCL: Buy at Rs 240| LTP Rs 242| Stop Loss Rs 225| Target Rs 266/275| Upside 10%

    HPCL on the weekly chart has given a breakout from the falling trend line. The stock has formed a positive divergence as well which confirms the bullish reversal.

    The momentum indicator RSI has turned sharply from the oversold territory and has given a falling trend line breakout similar to the price action.

    The lower-end support is visible at 225 which will act as a cushion for the bulls and the upside visible targets are 266/275.

    (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in