What is Core & Satellite strategy?

The benchmark equity indices maintained their upside journey for the third consecutive week with the NSE Nifty index registered its new lifetime high of 15,733. Overall, the index gained 234.60 points or 1.52% to 15,670.25 for the week ended June 4. Likewise, the BSE Sensex surged 677.17 points or 1.32% to 52,100.05.

Going ahead, the level of 15,800 would be a crucial resistance for Nifty index. A sustainable move above the same might reinforce the index to reach the milestone of 16,000. On the contrary, 15,400 would be decisive support for the coming week. A breach of the same might halt the ongoing momentum.

With regards to the Nifty Bank index, the level of 34,900 would be intermediate support and a breach of the same could result in further underperformance by the banking stocks. However, as the broader trend is still intact we expect buying to re-emerge from the range of 34,900 – 34,000 in the coming week.

Stock recommendations:

Amara Raja Batteries | Buy | Stop loss: Rs 700 | Target price: Rs 850

The stock is trading near multiple support levels and poised for a bounce similar to other auto stocks. The risk-reward is highly lucrative to long at current levels.

Dabur India | Buy | Stop loss: Rs 530 | Target price: Rs 570

We expect some volatility going ahead and thus it is better to be a part of the defensive space. Dabur is turning from the strong support and has confirmed a breakout on the daily chart which indicates a fresh upside.

(The writer is AVP-Technical Research at Anand Rathi Shares and Stock Brokers. Views expressed are personal)