Bulls of Dalal Street charged the market to hit the much-awaited psychological 21,000 level and record the highest weekly gains since July 2022, but it failed to hold the level as some consolidation kicked in. The phase of consolidation may last as long as the index trades below the 21,000 mark, with immediate support at 20,850 and crucial support at the 20,500-20,300 levels, but if the index decisively closes above 21,000, then 21,500 could be the possibility, experts said.
The Nifty50 has seen a strong gap-up opening in the week ended December 8, and jumped 3.46 percent to end at a record closing high of 20,969, forming a healthy bullish candlestick pattern on the daily charts with higher-high-higher-low formation for yet another week.
"In the upcoming week, 20,850 is viewed as an immediate support, and sustained trading below this level could trigger a price correction, potentially bringing prices towards the next support at 20,700," Sameet Chavan, research head for technical and derivatives at Angel One, said.
He further said the primary support zone remained the bullish gap created last week, ranging from 20,500 to 20,300, and as long as it holds, the secular bull run is expected to persist and any type of correction would be considered healthy for primary uptrend.
On the other hand, identifying key resistance is challenging in uncharted territory, but the 21,100 levels, representing a reciprocal golden (161.8 percent) retracement of the recent fall, holds technical significance, he added.
Ajit Mishra, SVP of technical research at Religare Broking, also said the Nifty has the potential to test the 21,200-21,500 zone and expects the index to hold the 20,300-20,550 zone in case investors decide to take some money off table.
He maintains a positive view on the market, despite the overbought conditions and suggests participants to look for buying opportunities on dips, while Sameet advised traders to focus on thematic movements for potentially outperforming trades while remaining vigilant in the dynamic market environment.
Moneycontrol collated the list of 10 stock picks from experts, which can generate healthy returns in the coming 3-4 weeks, from the closing price December 8:
Subash Gangadharan, senior technical and derivative analyst at HDFC Securities
Kotak Mahindra Bank: Buy | LTP: Rs 1,838 | Stop-Loss: Rs 1,750 | Target: Rs 2,000 | Return: 9 percent
Kotak Bank has shown relative strength last week. While the Nifty has gained 3.47 percent, the stock has gained 5 percent. In the process, the stock has closed above its recent trading range on the back of above average volumes, which augurs well for the uptrend to continue.
Technical indicators are giving positive signals as the stock is trading above the 20 and 50-day SMA (simple moving average). Momentum readings like the 14-week RSI (relative strength index) too are in rising mode and not overbought, which implies potential for further upsides.
With the intermediate technical setup too looking attractive, we expect the stock to move up towards its previous intermediate highs in the coming weeks. Buy between Rs 1,830-1,850 levels. Stop-loss is at Rs 1,750 while target is at Rs 2,000.
EIH: Buy | LTP: Rs 247 | Stop-Loss: Rs 237 | Target: Rs 265 | Return: 7 percent
After correcting from an intermediate high of Rs 275 tested in September 2023, EIH found support around Rs 205 levels in October 2023. These are strong supports as they also roughly coincide with the previous intermediate lows.
The stock has since then bounced back and made higher tops and higher bottoms over the last few weeks. The stock has broken out of its recent trading range this week on the back of healthy volumes. This indicates it is set to move higher in the coming weeks.
Technical indicators, too, are giving positive signals as the stock is trading above the 20 and 50-day SMA. Momentum readings like the 14-day RSI too are in rising mode and not overbought, which implies potential for further upsides.
With the intermediate technical setup too looking attractive, we expect the stock to move up towards its previous intermediate highs in the coming weeks. Buy in the Rs 245-250 levels. Stop-loss is at Rs 237 while target is at Rs 265.
Indiabulls Real Estate: Buy | LTP: Rs 90 | Stop-Loss: Rs 80 | Target: Rs 105 | Return: 17 percent
After correcting from an intermediate high of Rs 196 tested in November 2021, Indiabulls Real Estate found support around Rs 46 levels in March 2023. These are strong supports as they also roughly coincide with the previous intermediate lows.
The stock has since then bounced back and made higher tops and higher bottoms over the last few weeks. This week, the stock has broken out of its recent trading range on the back of huge volumes. This indicates significant accumulation has happened in this counter, which augurs well for the uptrend to continue.
Technical indicators too are giving positive signals as there has been a positive moving average crossover. The 20-week SMA has recently moved above the 50 week SMA. Momentum readings like the 14-week RSI too are in rising mode and not overbought, which implies potential for further upsides.
With the intermediate technical setup too looking attractive, we expect the stock to move up towards its previous intermediate highs in the coming weeks. Buy between Rs 87-91 levels. Stop-loss is at Rs 80 while target is at Rs 105.
Mehul Kothari, DVP – Technical Research at Anand Rathi
IRCTC: Buy | LTP: Rs 750 | Stop-Loss: Rs 715 | Target: Rs 795 | Return: 6 percent
In the past few months, we witnessed an exceptional rally in the railway stocks but IRCTC (Indian Railway Catering & Tourism Corporation) was the one which was lagging behind. A couple of sessions back, IRCTC confirmed a range breakout, and the price structure resembles a bullish Inverse Head and Shoulder pattern.
The price action is accompanied with the bullish placement of weekly ADX (average directional index) which is above 25. This might result in a strong upside momentum.
Thus, traders are advised to buy Rs IRCTC in the range of Rs 750 - 740, with a stop-loss of Rs 715 on closing basis for an upside target of Rs 795 in coming 1–2 months.
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Jubilant Foodworks: Buy | LTP: Rs 559.75 | Stop-Loss: Rs 499 | Target: Rs 645 | Return: 15 percent
On a daily scale, the said counter has taken out the previous swing high of Rs 556. On a weekly scale, price action is sustaining above all major exponential averages, which is a sign of bullishness.
On the indicator front, the daily RSI has taken out its previous swing high, along with the daily DMI’s bullish cross, which further confirms our bullish stance in the counter.
On a daily close basis, one can buy in the zone of Rs 550-560 with an upside target of Rs 645 and a stop-loss of around Rs 499 on a daily close basis.
Shrikant Chouhan, head equity research at Kotak Securities
HCL Technologies: Buy | LTP: Rs 1,364 | Stop-Loss: Rs 1,315 | Target: Rs 1,460 | Return: 7 percent
On daily and weekly charts, the stock is consistently forming higher high and higher low formation which is largely positive. On last Friday, the stock successfully cleared the short-term resistance of Rs 1,350 and succeeded to close above the same.
It also formed bullish candle on daily charts, which supports further uptrend from the current levels. We are of the view that, as long as the stock is trading above Rs 1,315 the bullish formation is likely to continue. Above which, the stock could continue the positive momentum till Rs 1,430/1,460.
Bank of Baroda: Buy | LTP: Rs 212 | Stop-Loss: Rs 204 | Target: Rs 227 | Return: 7 percent
In the past week, the stock rallied over 5 percent. After a long time the stock successfully, trading above 50-day SMA. A bullish candle on weekly charts and uptrend continuation formation on daily and intraday charts supports further uptrend from the current levels.
For the trend following traders now, Rs 204 would act as a trend decider level, above the same, the stock could rally till Rs 222-227.
HDFC Life Insurance Company: Buy | LTP: Rs 671 | Stop-Loss: Rs 660 | Target: Rs 725 | Return: 8 percent
After a promising uptrend, the stock was witnessing some profit booking at higher levels. However, the short-term texture of the stock is still in to the positive side.
We are of the view that, the stock has completed one leg of correction and now. If it sustained above 20-day SMA or Rs 660 level then it could move up till Rs 710. Further upside may also continue which could lift the stock till Rs 725.
Omkar Patil, Technical & Derivative Analyst at Ashika Stock Broking
UltraTech Cement: Buy | LTP: Rs 9,414 | Stop-Loss: Rs 9,075 | Target: Rs 10,400 | Return: 10 percent
UltraTech is currently experiencing a robust uptrend, characterized by a healthy correction from June 2023 to November 2023. Notably, this correction maintained a positive structure by avoiding lower lows and lower highs.
Having emerged from consolidation, the stock is now showing an uptick in volumes, indicating potential price acceleration. Furthermore, prices are positioned above short-term averages, and the RSI stands above the mark of 60 on both daily and weekly timeframes, affirming the presence of positive momentum.
We expect the prices to move higher till the mark of Rs 10,400 where the stop-loss must be Rs 9,075 on daily closing basis.
NOCIL: Buy | LTP: Rs 258.45 | Stop-Loss: Rs 250 | Target: Rs 290 | Return: 12 percent
NOCIL's stock underwent a year-long consolidation, fluctuating between Rs 255 on the higher end and Rs 200 on the lower side. A notable development occurred as the stock recently broke out of this range with a rising gap, highlighting robust demand fueling the breakout.
The surge in volume accompanying the breakout further validates its strength. Additionally, the RSI on the daily timeframe is above the 60 mark, indicating a rising momentum in prices.
We expect the prices to move higher till the mark of Rs 290 where the stoploss must be Rs 250 on daily closing basis.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
