Each of the fresh developments in global scenario lays an influence over the stock market and provident investing in the stock market is called for, in order to keep the profitability high and risk factors low. Aid of a knowledgeable stock advisor who can pre-empt the situation to the best short term and long term interests of an investor can be very useful at this juncture. He would be in a position to provide reliable stock tips and commodity tips.
Let us take a look at the outlook for energy stocks with reference to the present day market scenario.
Crude oil trade is on a high and on Tuesday as oil prices attained a new peak for 2019. The key guiding forces behind the development was a statement by US official, according to which and enhancement of sanctions on Iran are likely by Washington. US will influence the areas of economy which have not been targeted earlier and the waivers over sanctions are also unlikely, as expressed by Trump administration.
Similarly an export terminal in Venezuela halted operations due to shortage of electricity. They were restarted on Friday following a phase of blackout.
Another significant development was that OPEC oil supply attained a four year low in March. But data from US and China, two of the largest economies in the world has been positive.
Strengthening of US dollar and the equities laid an influence over the bullion market, and trading attained the lowest point in past three weeks. The US retail sales were down in February, but the factory activity rebounded in March, and construction spending helped overcome fears about slowing down of the economy.
The Perth mint too has expressed that gold product sales in March is higher by 68% as compared to the previous month, and is at the highest levels after November last year.
A significant development in the banking sector was initiation of the new financial year, which was greeted positively by the Indian Benchmark. PSUs, IT counters, metal and banks came across sharp rallies, and benchmark indices reached an all time high.
A consistent Put writing was seen on the derivatives front, with 11,500 and 11,700 – 11,600 strikes. In the same series, the major hurdle will be caused by highest open interest of 23 lakh shares, bought to fore by 12,000 strike holds.
Sector rotation too is likely to continue in the sessions that follow and prior to taking the upswing, index may consolidate at higher rates. Anticipation over the outcomes of RBI policy outcomes is likely to keep the traders cautious.
If we take a look at the technical front, primary support levels for Nifty would be 11,600 – 11,550. The current trend will charge towards 11,800 – 11,850 in all likelihood.
Let us now take a look at primary stock trading ideas that are stipulated to yield high returns. The traders can hence get the stock for TVS motor company in range of Rs. 485 – 487, with stop loss below INR Rs 460. The upside target stays at Rs 525 levels.
The stock for TVS motor company has continued on a downtrend. It is trading significantly below its long term moving averages.
At the present time, a Double Bottom pattern has been created by the stock. It is likely to bounce back sharply against its short term moving averages.
The stock has managed to acquire support for its exponential moving averages for 200 days on a weekly interval. This suggests that in short term the prices will experience only a limited downside.
For secondary indicators, there is a positive diligence along with a W pattern. The traders can hence get the stock in range of Rs. 485-487, with a stop loss of below INR 460 Rs. The upside target would be at levels of Rs. 525.
Another lucrative stock for investment in present phase is HDFC. The bull trend of the stock is prominent across broader charts. The last couple of weeks have seen a consolidation in levels of Rs 1900-2000.
The stock presently makes an inverted head and shoulder pattern over a daily time frame. It seems likely that that a breakout at the neckline is prominent in pattern formation in near future.
Traders can hence invest in the stock in a range of INR 1990 -1997, with a stop loss of below Rs.1990 and keeping the upside target at Rs. 2130.