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May 2018 Market Overview & Best Stocks to Watch

May 5, 2018

Rally continued in the equity market with the Nifty closing at 10,739 levels 30 April, up 0.44 percent. For April, it gained 6.2 percent to form a long bullish candlestick pattern on the monthly chart.

The weekly MACD has given a positive crossover, with its average after 12-weeks above the neutral level of zero. If the index manages to sustain at current levels, it could well test 10,910-10,940 levels which is also its resistance level. And if the index doesn’t sustains at current level the support level is expected to be 10550-10520.

Below is a list of stocks that are likely to be in focus in the May 2018 month trading sessions.

TATA POWER

On the long-term monthly chart, the stock is showing a bullish trend. The stock has been range bound for the past ten months between INR 75 - 101 levels. At present the stock is at its intrinsic value as it is trading near 200 SMA.

Previously, there was a cross-over between 9 & 50 EMA on a daily chart and the stocks bounced back from the support INR 85. Now with the cross-over it is expected that the stock will be in a bullish trend.

With a positive crossover in MACD with its average trending above the neutral level of zero suggests a resumption of the uptrend. Thus, it is expected that the stock will breakout and will be in a bullish trend with a support of INR 80.

ARVIND

On a weekly chart, the stock managed to consolidate even after an abrupt fall from INR 470 to INR 380. For past ten weeks the stock has been range bound between INR 360 – 430.

Previously, there was a cross-over between 9 & 50 EMA on a daily chart and the stock bounced back from the support INR 402. Now with the cross-over it is expected that the stock will be in a bullish trend. And on a weekly chart the stock is consolidating and it is expected to break out further.

With a positive crossover in MACD with its average trending above the neutral level of zero suggests a resumption of the uptrend. Thus, it is expected that the stock will breakout and will be in a bullish trend with a support of INR 402.

GMR INFRA

On the long-term monthly chart, the stock is showing a bullish trend. The stock has been range bound for the past ten months between INR 15 - 25. At present the stock is at its intrinsic value as it is trading near 200 SMA.

Previously, there was a cross-over between 9 & 50 EMA on a daily chart and the stock was bounced back from the support INR 19. Now with the cross-over it is expected that the stock will be in a bullish trend.

With a crossover in weekly & monthly chart it is expected that the stock is in uptrend. It was even found that the stock is bouncing back from the support of 200 SMA, which means the stock is being bought at the intrinsic price. Thus, it is expected that the stock will be bullish for a long term purpose with a support of INR 15.

DALMIA BHARAT

On a weekly chart, the stock managed to consolidate even after an abrupt fall from INR 3350 to INR 2500. For past ten weeks the stock has been range bound between INR 2550 – 3100.

Previously, there was a cross-over between 9 & 50 EMA on a daily chart and the stock bounced back from the support of INR 2850. Now with the cross-over it is expected that the stock will be in a bullish trend. And on a weekly chart the stock is consolidating and it is expected to break out further.

With a positive crossover in MACD with its average trending above the neutral level of zero suggests a resumption of the uptrend. Thus, it is expected that the stock will breakout and will be in a bullish trend with a major support of INR 2800.

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