Crude Oil is falling, Rupee is appreciating, FIIs are coming back, then why equity market is still silent?
After heavy and sharp fall in crude oil prices, it is common to see some appreciation in rupee because when Rupee was on a negative trend, Crude Oil was the main component of that fall in rupee. On the back of Fallen Crude Oil, FIIs have again started investing in Indian Market, based on the data of last 2 weeks.
Definitely, it is a positive indication for our market. So, markets should have reacted on this in a positive way. But in reality, market has reacted on this development in a negative way which could be little confusing for traders.
However, one should not forget that elections are very close and it will be a major trend player of markets in upcoming weeks. So, such reactions are common to see in market. But I think Nifty, after recent developments, has more chances to test 10800/11000 in short term.
Below, I have mentioned some technical calls which traders can use for the remaining November.
During heavy selloff pressure in market during September and October, stock of Kansai Nerolac had also faced great selling pressure. But from lower levels, Nerolac had took a good support and is now in a uptrend on monthly technical charts. This uptrend is supported by Fall in Crude Oil which is positive for the company.
Level of 442 was a strong resistance for the stock, which has been clearly broken on the closing basis. Currently, stock is trading around Rs 445. Next resistance for the stock now lies around Rs 460, which means stock may give 3 percent rally in next few days without any major difficulty.
However, after recent fall of $3-5 in crude oil prices, I feel level of Rs 500 is also possible.
So, I think with a stoploss of Rs 434, one can try this stock for the target of Rs 460/500, achievable in next 10 days.
My next stock is Navin Fluorine. Fundamentally, the company is very strong and many brokerage houses have fixed a target ranging from Rs 900-1000, for this stock.
On technical charts, level of 695 was a strong resistance for the stock of Navin Fluorine. However on Thursday trading session, it gave a great move which helped it to cross this resistance and to confirm its upward trend. I think stock can now face some resistance around Rs 760. Before this level, there is an another resistance around 745, but it is only a minor one.
Overall, I think one can try this stock for the target of Rs 745/765. Keep the stoploss at around Rs 694/689.
From last one month, Chambal fertiliser stock was quoting in a range of just Rs 6. Means it was in a range bound of just 4 percent, from 15 October. But with recent rally in Deepak fertilizers shares, this (chambal fertilizer) stock has been able to see some action!
The stock which was trading in just 4 percent range, gave a move of more than 5 percent in a single day on Thursday. This attracted me a lot and I think this will also attract you, when you will hear that from fundamental point of view also, company is very strong.
Overall, I think it is possible to see some great action in shares of Chambal fertilisers in short-term. Therefore, one should definitely try this stock for the target of Rs 165/170. Keep the stoploss in this trade around Rs 141.
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