Nifty Daily Analysis 1.1.2020

With the Nifty settling down at 12,182.5, the structural bull run is likely to occur in the first quarter of this year 2020. The index seems overvalued by many market participants and quick pick seems a slightly tough task. In light of this, we can check up this stock of the pharmaceutical sector – Aurobindo Pharma. On 1st January it closed at 458.1 and seems to be testing its trend line. It has reversed its long term downtrend with conviction in November 2019 and a strong support zone is established at 425-430. Longs can be initiated with a target price of 470 and a definitive stop loss of 454. The risk-reward ratio of this trade is approximately 1:3

Disclaimer: We have provided this information to Traders and investors for education purposes only. It is neither a legal interpretation nor a statement of SEBI policy. Before making any investment or trading decision is it advised to consult your financial advisor.

Happy Trading!

Satyarth Grover.