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Today I will look at three new age stocks which are Zomato Ltd (NS:), One 97 Communications Ltd (NS:), and Fsn ECommerce Ventures Ltd (NS:). I chose to peruse through them as brokerages presently are very confused about these three. I say this as on one hand, the brokerages state that they are bullish on the stocks due to which they have provided an upside target. Yet, at the same time, they are also giving a downside target, which shows how puzzled they are. Thus, we will look at them as people who trade rather than desk analysts who are there to write a brokerage report. This will give us a view of where they are headed for the next few weeks.
The first stock is looking at is Paytm and I truly wish they had listed this equity in the derivative market as it has had a continuous fall. This is as the stock has tumbled from a high of Rs. 1,955 to a low of Rs. 903. Now the big question is whether the stock has reached a bottom. I don’t believe so as when you look at the weekly chart, there is candle support at Rs. 875. But, I don’t expect it to hold as the stock’s daily chart is showing signs of bearishness in one of my key indicators. Thus, I am expecting the stock to fall until the support zone at Rs. 790. Once it reaches the support at Rs. 790, I will share my new view about it via my Twitter (NYSE:) handle.
The second stock is looking at is Zomato. Zomato’s chart is at a crucial juncture, as it is near strong support at Rs 82. Thus, the stock can technically go both ways. If the stock were to hold the support, then the initial targets on the upside will be Rs. 101 and Rs. 114. However, I personally don’t expect it to hold the support. This is like the stock’s quantitative data is still very bearish. Thus, if it were to break the support at Rs. 82, then the next target is the support range between Rs. 62 and Rs 65. Once it reaches the support zone highlighted above, I will share my view about it via my Twitter handle.
The third stock is looking at is Nykaa. Out of the three stocks, this looks the most positive. This is as the stock on the daily chart is in the process of forming a bullish pattern. I initially expect it to fall towards the support zone between Rs. 1,510 and Rs. 1,480. However, once it reaches the support zone, I expect a bullish reversal to begin for the medium term. The resistance zones to watch for the bullish reversal are at Rs. 1,810 and Rs. 2,010. At the support zones, I will be going long in the stock as it will have completed the formation of its pattern. This to me is a strong enough signal.
Overall, the stocks mentioned above still have much more of a downside move left. I say this as the patterns are still bearish on the technical and quantitative front. The only stock with light at the end of the tunnel is Nykaa. Thus, I don’t think traders ought to consider buying any dip that occurs in Zomato or Paytm until they reach the supports highlighted above.
Good luck trading.
Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Thus, you must trust your analysis and judgment before making investment decisions. The report provided is for informational purposes only and should not be interpreted as a proposition to buy or sell any securities.
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