The ongoing trend in the indices suggests resistance at higher levels, although they are not indicating any correction as higher levels are tested again and again. It could be a case wherein the selling pressure is getting absorbed; however time will unfold the next move.
During the uncertain scenario, the question arises as to what should be done to safeguard one’s investment in Nifty50 stocks. There are eighteen stocks in the index which are trading near their 52-weeks high and two of them are close to hit a new high (Kotak Mahindra Bank and Larsen and Turbo).
As mentioned in several technical analysis
books that 'Trend is a friend', one needs to keep proper support
level to ride the rising stocks. The feeling of “opportunity loss” may haunt many; however keeping proper support
level will not only give a sense of security but will also help to leverage
other non-performing stocks. Once the support
level is broken, one can start booking profits, as per the chart.
Three stocks that are trading near their 52-week lows are Mahindra & Mahindra, Hero MotoCorp, and Maruti Suzuki India. The trend seems negative, but, if these stocks form consolidation
in an immediate term, then one can look for buying opportunities.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)