Last Friday Nifty closed at 5660.65, 68.30 in red. But there was a positive rally throughout the week except in Friday.
From previous week onward FIIs are on the buying side. This is a positive note for Indian market.
So in this scenario I do not expect a sharp correction in the market. But there is a chance for small corrections. There is no chance for Nifty to settle below 5500 in this scenario.
This week the trigger of the market will mainly depend on the First Quarter Results. Infosys's result will be announced on July 12 and result of TCS will be announced on July 14.
So the further upward movement of the market is mainly depend on the Q1 result. Fund flow from FIIs to Indian market will mainly depend on the Q1 results. Monthly Inflation news and IIP data also affect the positive rally. (IIP( Index of Industrial Production) data is a simple index which provides information about the growth of different sectors of our economy like mining, electricity, Manufacturing & General.)
I think the major support level of Nifty is at 5600. If trade can stabilize in this level, it can go up to 5760, which is the 1st immediate resistance.
If Nifty breaks that level, the next immediate support will be at 5820.
The stocks that I prefer in this situation is
1) IRB Infrastructure Developers Ltd.
The company is mainly focusing on constructions, real estate development etc. The clients are mainly Government agencies.
I advise buying the stock in the range of 155-160. The immediate resistance will be at 180.
2) IndusInd Bank Ltd.
It is one of the major new generation bank in India. Now the stock is trading at 286 level. The best buying level will be at 250. Profit booking is advisable at 305.
3) LIC Housing Finance
LIC Housing Finance Ltd. is one of the largest Housing Finance company in India 19th June 1989. The Authorized Capital of the Company is Rs.1500 Million (Rs.150 Crores) and its paid up Capital is Rs.950 Millions (Rs.95 Crores).
The best buying level is at 196 level. The first support will be at 236 and if the economic situations are good, it can go up to 250. Profit booking is advisable in these ranges.
4) Tata Steel
Tata steel is a global steel company pioneering in steel manufacturing. The safe entry level will be at 580. It can go up to 620 and if stock break that resistance level it can move to 640.
Regards Hari " लोका समस्ता सुखिनो भवन्तु "
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