The Indian market has witnessed heightened volatility ahead of the general election outcomes. This volatility could lead to significant market movements in both upward and downward directions. In such a volatile environment, investing with a longer time horizon is the most suitable strategy. However, employing tightened stop-loss in short-term trade is necessary to safeguard capital.
Given the current scenario, Vishnu Kant Upadhyay, Assistant Vice President – Research and Advisory at Master Capital Services Ltd., recommends several less volatile equities capable of attaining defined targets in the medium term. However, we advise traders and investors to implement stop-loss measures to manage risk effectively.
The recommended stocks are as follows:
1. SBIN
This prominent PSU Bank’s prices are traded on a bullish trendline taking support near its strong base at 750, the vicinity of 21-week EMA. We expect prices to continue their ongoing bullish trend with potential rise towards 950, 1000. On the lower side, 720 will act as a stiff support.
2. GMRINFRA Airport
The stock has taken a reversal from the major support zone of 70, 72 with a huge volume spike on the daily and weekly chart. Investors are advised to build a long position in a range of 82-84 for the target of 110 and implement stop loss below 70 to manage risk.
3. SAMVERDHAN Motherson
The stock prices witnessed a robust breakout from the horizontal resistance of 135 with a huge volume spike on the daily and weekly chart. Investors are advised to build a long position in a range of 140-145 for the target of 175-180 and implement stop loss below 120 to manage risk.
