After witnessing extreme fall since October, the market has gained somewhat positive sentiment of investors. While 20+ stocks from NIfty50 have fallen more than 20% from their highs, fundamentally strong stocks are now giving a good buying opportunity considering the improved market sentiment for short-term and fair value too.
While the market outlook is still bearish in overall, but there is a buying opportunity in some large-cap stocks.
Nifty50 is trading in a rising channel pattern and has given a non-decisive breakout from its triangular pattern trendline. One green candle closing above the trendline will take the Nifty50 to its Target (NYSE:TGT) 1 of 11,000.
While, if someone wants to take a more sure trade in a NIFTY50 stock then ITC (NS:ITC) will be a good buy for short-term.
ITC has found it tough to close above 290. Since October it has successfully closed above 290 for the first time yesterday.
The pattern can also be seen as the double top pattern and the stock has crossed the resistance now.
While it has formed an inverted hammer on the daily chart, still it has managed to close above the strong resistance.
With a small closing basis stop-loss of 286 and target of 300, positional and short-term traders can buy the ITC @cmp 289.50. Generally, ITC follows its trend for a long time, therefore, this trade can be profitable in a big way.
ITC is also among our top picks for long-term investment.
Apex Advisors (since 2001)
*Before taking any trade and investment you must consult your financial advisor. The market involves risk.
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