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By Abhishek Karande(Analyst, Indianivesh)
Where we are: Benchmark Nifty Index continues to oscillate between 10,700-11,000 levels during the month of January 2019.
Bulls made several attempts to surpass 11,000 mark but were capped.
Intermediate support for index is now at 10,700-10,650 levels.
A decisive break is needed and could possibly trigger further weakness.
However the rally since the low of 10,000 in November 2018 until recent high of January 2019 appears a bounce and in addition to this, there is a minor possibility market could rebound until 11,000- 11,100 before heading lower below 10,700-10,650.
What is in store: Going ahead in 2019, Nifty could outperform MidCap Index on relative basis.
Within the auto space, Ashok Leyland at the current levels of Rs 82 indicates price could continue to oscillate towards the southern trajectory until Rs 75-70 levels.
Bajaj Auto at Rs 2,623 has breached the intermediate levels of Rs 2,630 and is poised to edge lower initially till Rs 2,450-2,500 levels.
Avoid going long or accumulating Maruti as stock could possibly witness extended correction.
Similarly Escorts could witness a fresh correction from the current levels of Rs 702 until Rs 640.
What could Investors do: Going ahead, cement sector which posted a similar rebound like Nifty Index is now poised for correction.
Fresh correction is now visible in Ramco Cement.
At the current price of Rs 578 stock could possibly edge lower until Rs 500 mark.
Grasim could continue its lower oscillation until Rs 700 mark.
Pharma stocks, mainly Ajanta Pharma is poised for a fresh correction.
At the current levels of Rs 1,127, the stock could witness lower moves until Rs 1,000, with a likelihood to edge lower than the Rs 1,000 mark.
Stocks that could be consider to invest for the current year are United Breweries, Infosys, Axis Bank and Wipro as trend on higher time frame of these stock are bullish.
