The last week was tremendous as the market witnessed spontaneous changes in Nifty. Although, the one-day activity caused no major damage in terms of stocks but we can still expect some resistance.
The Nifty already indicated weakness by closing below 5-day EMA recently, which occurred for the first time in the recent past.
The index can even slip towards 14,250/14,000 if the Nifty drops below the level of 14,380.
One has to be careful before bidding bigger targets even if some sort of correction takes place. Although, the overall market tendency is very hopeful, it is still prudent for the traders to avoid aggressive leveraged positions.
Since, investing in heavy stocks is not wise as per the current market volatility but Vodafone Idea and Indraprastha Gas are still good options for short-term.
Vodafone Idea stood out benchmarking the highest close in the last 18 months which is above of its multi-month resistance.
There is a stupendous buying interest in Vodafone stocks as per its volume activity. Abiding decline towards 13 with aim of Rs 18-20 is recommended for upcoming weeks.
Apart from Vodafone Idea, the gas distributor companies have also outperformed since mid-October. The IGL (Indraprastha Gas) has tremendously managed to gain approximately 55% within a short span of time.
Indraprastha made a fresh record in last Thursday with high of Rs 581, which makes short-term corrections unavoidable.
Traders can sell the shares on spring towards Rs 560-565 for short-term.
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