According to Milan Vaishnav, the CMT, MSTA, Founder and Technical Analyst of Gemstone Equity Research and Advisory Services, Mahindra and Mahindra is likely to keep its momentum absolutely intact.
Cummins India also has some room left on the upside and faces resistance near Rs 4,200, he believes.
He is betting on Dixon Technologies and Hindalco for next week. "Dixon Technologies is showing a formation of a not-so-classical Inverse Head & Shoulders formation, while Hindalco has formed an Ascending Triangle pattern, and such patterns are bullish," he reasoned.
Do you think the recent decline is merely profit booking after the strong rally, possibly setting the stage for the next leg of the upmove?
The recent decline is nothing more than technical factors playing out. It is profit-booking after a good rebound from the recent swing lows near 24,350. Also, over the past few days, there was aggressive Call writing at 25,100 levels. This kept the resistance zone of 25,000-25,150 intact for the Nifty, to which it resisted.
Overall, we remain in the broad trading range with strong undercurrents and will eventually move past the crucial resistance zone of 25,000-25,150 in the coming days.
Which two stocks are on your buying radar for the upcoming week?
Dixon Technologies (India) and Hindalco Industries are the two stocks I am watching.
Dixon Technologies is flirting with a multi-point resistance level that it has tested many times over the past months. It is also showing a formation of a not-so-classical Inverse Head & Shoulders formation. Any move above Rs 17,000 will propel the stock higher.
Hindalco has formed an Ascending Triangle pattern. Such patterns are bullish and tend to get resolved with the prices moving higher regardless of their place of formation.
Will the Bank Nifty be able to defend its 20-week EMA in the coming weeks?
Bank Nifty has seen closing just a notch above the 20-week EMA, which is placed at 54,952. It is expected to defend this over the coming days.
Are you bullish on Blue Star and Coforge?
Blue Star has attempted to revere its trend and has moved out of the range in which it has consolidated over the past couple of weeks. So long as it is able to stay above Rs 1,850, it may improve its valuations going ahead from here.
Coforge, on the other hand, has kept its primary trend intact. It is presently seen in a range of Rs 1,675-1,790 levels. While Rs 1,675 acts as a major support, any move above Rs 1,790 will take the stock meaningfully higher from current levels. Unless any of these two levels are either taken out on the upside or violated on the downside, the stock may stay in a trading range.
Do you expect the upward momentum to continue in M&M and Cummins India next week?
Mahindra and Mahindra (M&M) is one of the most resilient and technically well-placed stocks from the frontline markets in general and the auto space in particular. It is likely to keep its momentum absolutely intact.
Cummins India also has some room left on the upside and faces resistance near Rs 4,200.
Do you believe the rally in the Nifty Consumption index will continue, following its recent consolidation breakout?
The Nifty Consumption Index may consolidate in the coming week. It has staged a nice rally and if it has to capitalise and extend it further, some consolidation in a ranged manner cannot be ruled out in this space. It will resume its upmove once it moves past the 12,300 level again.
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