Even after hitting a new lifetime high by Sensex, it cannot be said right now that market is in a trend of good buying! If you are also holding few midcap or smallcap stocks, you would also feel same.
After few months of consolidation, market indexes specifically sensex has now recently made a fresh record high whose credit goes to fresh Highs in Reliance, TCS, HUL, HDFC and HDFC Bank. Despite of such a weak environment surrounding overall market, many largecaps have continued their uptrend journey in July also which had begin in earlier February. In this Uprend Journey, few stocks are still available at a good price whereas few stocks doesn’t looks as much attractive as others.
In present condition of market, I think few stocks are there where traders may try to trade for a very short period of time. Also, traders have to use a stoploss along with their trades to avoid any heavy capital loss. The stock ideas for July 2018 are
After AGM on 5th July, we have seen a good buying in Reliance Shares which helped it cross the mark of Rs 7 lakh crore. However, it is not new now for traders and investors when Reliance stock has provided a great opportunity. Whenever, something positive comes from the AGM or any other meeting, we have seen Reliance shares making new highs. This is completely different from other stocks where it is usually to see buying before any great announcement. It is great for all types of investors as it provides a better way for them to analyse the potential of stock.
Technically, stock has recently given a great breakout around Rs 1045 and has also achieved the important level of Rs 1100 successfully. Now, I think level of Rs 1200 would be the next target for stock as per its technical charts. I don’t think this target would be a big challenge for Reliance in short-term because after recent announcements made in AGM, it is again looking very attractive at current levels in respect to good fundamentals also. However, in this trade, you have to use a stoploss of Rs 1045. Because if ( for some reasons) it breaks this level, than it may move to more lower levels. Although, from current levels, I think reliance industries can still give you a return of around 9-10 percent in this month.
Adani Enterprises is another stock from my list where it can be favorable to take a trade. From last few months, stock was in a continues slide which led to a 50 percent fall in less than 4 months. At around Rs 200, it was a good and attractive stock. But suddenly, interest of investors in this counter started loosing which I think could be due to overall depression in midcaps and smallcaps.
Whatever the reason was it, adani enterprises is now again available for investors below Rs 150. But instead for investors, it looks a good option to me for traders. The stock, after sliding more than 50 percent from highs of 223 is now getting recovered from its lows. Around Rs 100, stock has taken a support and now it is around Rs 131. From current levels, it is little difficult to say about whether it has made its bottem or not? But by looking at its short term chart pattern, I think it can move further for the target of Rs 145/150. Therefore, for a 10-15 percent gain, traders can try to take a buy trade in this stock with a stoploss of Rs 124/126.
Automobile Giant, Maruti Suzuki is my last pick from Large caps where a major breakout on technical charts has recently occurred. This breakout had arisen around Rs 9050 after which it came out from the downward trend pattern. From that levels, stock has already given 4 percent jump. But still from current levels, I think Maruti Suzuki could be a good pick to buy/hold for this month.
With a stop loss of Rs 9150, traders can try to buy it at current levels for the initial target of Rs 10,000. If the stock breaks this level in next few days, then the level of Rs 10400 would be the next target for traders.
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