Tag: 上海上门自荐OT

Buy these two stocks with strong support on charts while Nifty soars to fresh all-time highs

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By Nagaraj Shetti

The uptrend continued in the market for the third consecutive sessions on Wednesday and the Nifty closed the day higher by 142 points. After opening on a positive note, the market slipped into intraday decline soon after the opening and filled the upside gap completely. A sustainable upside bounce has occurred in the market during early to mid-part of the session and shifted later into a range move in the mid to later part of the session.

The new all-time high formation at 14868 on Wednesday has resulted in a faster retracement of the last downswing. Recently, the market has consumed 6 trading sessions to complete its down leg, which started from the high of 14753-21st Jan. 

The sharp upmove of the last three sessions has retraced this down leg in three sessions compared to 6 sessions of decline. The previous broken support (trend line and moving averages) has been regained and that subsequently resulted in a false downside breakout. This action could be a positive for the market and one may expect further upside in the near term. However, the placement of long term resistance by the way of cluster trend lines could offer temporary resistance for the market around 14800 levels.

The short term trend of Nifty continues to be positive. Having placed at the resistance zone of around 14800 levels, there is a possibility of volatility or minor profit booking from the highs of 14800-14900 levels in the short term, but eventually this hurdle is going to be taken out on the upside. Immediate support is placed at 14750.

Stock Picks: 

Buy CARE RATINGS LTD- (CMP Rs 523) 

The weekly timeframe chart of CARE Ratings Ltd signal a formation of crucial bottom reversal. After showing a weakness in the last couple of months, the stock price has bounced back smartly, post the formation of reversal candle pattern in the last week at the low of Rs 461. The upside bounce in the stock price has emerged from the cluster supports like horizontal line (support line as per change in polarity) and 20 week EMA around Rs 470-475 levels.

Weekly 14 period RSI is currently placed just below 60 levels. Its sustainable move above 60 could further strengthen upside momentum in the stock price. 

Buying can be initiated in CARE RATING at CMP (523), add more on dips down to Rs 500, wait for the upside target of Rs 580 in the next 3-4 weeks. Place a stop-loss of Rs 485.

Buy TRENT LTD – (CMP Rs 678) 

The sharp downtrend in the stock price seems to have reversed and the stock price has witnessed a sustainable upside bounce in the last few session. The downside breakout of the trend line support at Rs 630 of last week seems to have turned out to be a false downside breakout, as the stock price witnessed upside bounce and regained the lost support area in the subsequent week-as per weekly chart. We observe positive chart pattern like higher highs and higher lows on the weekly chart. The recent swing low of Rs 585 could be considered as a new higher low of the pattern. Hence, one may expect further upside in the near term. 

Buying can be initiated in TRENT at CMP (678), add more on dips down to Rs 650, wait for the upside target of Rs 750 in the next 3-4 weeks. Place a stop-loss of Rs 630.

(Nagaraj Shetti is a Technical Research Analyst at HDFC Securities. The views expressed by the author are his own. Please consult your financial advisor before investing.)

5 technical stocks to buy: Nifty may hit 15500, Sensex seen at 53,000 in next 3-6 months

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By Shrikant Chouhan

Technically, at present the market is following the pattern of the rally between 2001 to 2008.  It could be 10 times in the next 7 to 8 years. The Nifty was at 7500 during Covid19 crisis and the Sensex was at 25700. Nifty has the potential to move up to 75,000 and Sensex to 2,57,000 points. In the next 3-6 months, we expect the Nifty to reach 15,500 and Sensex at 53,000 levels.

Between 1992 to 2001, Sensex moved from 2000 (lowest) to 6000 (highest) levels, which posted decent returns, however, the rally was completely gradual and highly volatile. It was the toughest task for every participant (Fund Managers to Retail) to capture major moves.

However, between 2001 to 2008 it was flourishing for everyone. Every individual and corporate made huge money as the rally was consistent and less volatile. BSE Sensex moved from 2,000 to 20,000 (10 times). While Nifty 50 raced from 850 to 6350 (8 times) levels. Similarly, from 2008 to 2020, the Nifty 50 rose from 2250 to 12000 (6 times) levels and Sensex from 7700 to 42000 (6 times) levels. It was yet again gradual and highly volatile. It was the toughest task for every market participant to gauge the mood. 

Based on the above correlation our stance, one should buy on every major dips. Support for the market exists at 14000 and 13000 levels. 

AMBUJA CEMENTS (BUY): The stock is forming higher top higher bottom series on a weekly and monthly basis.  It has recently broken consolidation triangle formation at 225 and recovered back sharply.  Technically, the stock is ready to surpass the level of 291.50, which is the all-time highest level for the stock.  Buy in tranches with a stop loss at 225.  On the higher side, we could see the levels of 290 and 300.  

JINDAL STEEL & POWER (BUY): The stock has formed and validated to the formation of a double bottom.  Based on it we could see the levels of 350 on the minimum and 550 on the maximum side. The metal index 700 points away from the all-time highest levels, which it has formed in the year January 2018.  We are of the view that the index is ready to surpass the all-time highest levels and that would generate more fuel in high beta stocks like JSPL. Buy at current levels and more on dips with a final stop loss at 270.  

BHARTI AIRTEL (BUY): The stock is in long term break out.  It has broken multiyear resistance at 500.  Although the stock was down in the second half of the year it recovered back and regained the level of 500 plus.  We are of the view that the stock is heading for 700 in the medium term.  It is a buy at current and more on dips with a final stop loss at 530. 

BALRAMPUR CHINI MILLS (BUY): It has spent 14 year within the trading range of 202 and 29. Currently, the stock is trading at 183 levels and in the process of crossing the level of 202 based on it’s formation of rounding bottom on the monthly chart.  Technically multiyear break out of the trading range helps the stock to move further higher. Even if we go through with stocks related to agriculture activity, then we can notice that most of them have already entered in the long term breakout, which is positive for the stock.  The strategy should be to buy at current levels and more on dips up to 170 with a final stop loss at 160.  On the higher side 200 and 225 seems achievable. 

TATA MOTORS (BUY): On a daily basis, the stock is in strong uptrend, whereas it is in the pullback mode on a monthly chart.  It was at 605 levels in the year 2016 and went to 63.50 levels during the period of Covid19. After crossing the level of 200, we saw a vertical up move in the stock.  It has given a price and volume based breakout, which is significant and along with positive news flow for the stock on a domestic and international basis. Even if we consider 50% retracement from the lower levels then it could reach 330 levels. The strategy should be to buy at current levels and more on dips to 225 levels in the anticipation of support to the electrical vehicle industry.  Keep a stop loss at 200 for the same. 

(Shrikant Chouhan is Executive Vice President – Equity Technical Research at Kotak Securities. The views expressed are personal. Please consult your financial advisor before investing)