Indian market witnessed selling pressure at higher levels pushing Nifty50 below 15800 levels on a closing basis for the week ended July 2. The Nifty50 and Sensex fell by about 0.8 percent each while the big outperformance was seen in the smallcap space.
Even though the Nifty50 failed to close above 15800 levels for the week ended July 2, but experts feel that bulls have a fighting chance to bounce back as the crucial support of 15650 is still intact.
On the upside, stiff resistance is placed at 15900-16000. While on the downside, supports are placed at 15650-15450, suggest experts.
It was probably the dullest week in the last fifteen months which our markets have experienced. “As far as levels are concerned, we managed to hold crucial support of 15650, and as long as 15650 – 15450 are being held, the bulls have no reason to worry for,” Sameet Chavan, Chief Technical & Derivatives Analyst, Angel Broking said.
“On the upside, reaching the new milestone of 16000 has become challenging and the market clearly seems to be waiting for some sort of trigger to reach there. Before this, 15800 followed by 15900 are to be seen as immediate hurdles,” he said.
With Friday’s positivity, the hopes have certainly built for the benchmark index to head higher towards the millstone in the forthcoming week. “But we reiterate, if that has to happen, the banking space certainly needs to come out of its slumber phase,” added Chavan.
We have collated a list of top 10 trading ideas by experts for the next 3-4 weeks:
Rajesh Palviya, VP-Technical & Derivative Research, Axis Securities
On the weekly chart, the stock has witnessed a “Flag” formation breakout around 250 levels which signals a resumption of the uptrend. Huge volumes on the breakout signals increased participation near the breakout zone.
The stock is in a strong uptrend as it continues to form a series of higher Tops and higher Bottom formations across all the time frames. This buying momentum was observed from 50-day SMA (228) which remains a major support zone.
The daily and weekly strength indicator RSI is placed above the 50 mark which supports rising strength. The above analysis indicates an upside of Rs 308-320 levels. The holding period is 3 to 4 weeks.
On the weekly chart, the stock has witnessed a “Multiple Resistance” breakout around 5500 levels indicating a strong comeback of bulls.
On the weekly and monthly chart, the stock has formed a higher Tops and higher Bottoms formation indicating strength.
On the daily chart, the stock has observed a “Bollinger Band” buy which reconfirms upside momentum. The stock is well placed above its 20, 50, and 100 day SMA which supports bullish sentiment.
The daily and weekly strength indicator RSI is in a bullish mode which supports rising strength as well as momentum. The above analysis indicates an upside of 5750-5900 levels. The holding period is 3 to 4 weeks.
NOCIL Limited: Buy| LTP: Rs 230| Buy Range 228-224| Target: Rs 252-263| Stop Loss: Rs 213| Upside 9%
With the current close, the stock has broken out from its “Up-Sloping Channel” at 227 levels on a closing basis along with rising volumes.
On the daily chart, the stock has also formed higher Top and higher Bottom formations indicating a shift of trend to the upward.
The stock is placed above its 20, 50 day SMA, and averages are also inching upward along with prices, which reconfirm s positive bias.
The daily and weekly strength indicator RSI is in bullish mode along with positive crossover which supports rising strength. The above analysis indicates an upside of 252-263 levels. The holding period is 3 to 4 weeks. Reliance Industries Limited: Buy| LTP: Rs 2129| Buy Range 2130-2090| Target: Rs 2250-2285| Stop Loss: Rs 2070| Upside 5%
On the daily chart, the stock has bounced back from its 50% Fibonacci Retracement level of 2076 of its earlier Up-move (1876-2275) which remains a crucial support zone. This shows bullish sentiments in near term.
On the daily chart, 50-day and 200-day SMA golden crossover represent rising strength at current levels. On the weekly chart, the stock continues to scale upward forming higher Tops and Bottoms.
The daily strength indicator RSI is quoting around 50 mark and in a bullish mode which supports rising strength. The above analysis indicates an upside of 2220-2285 levels. The holding period is 3 to 4 weeks.
Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Expert: Sameet Chavan, Chief Technical & Derivatives Analyst, Angel Broking
BSE: Buy| LTP: Rs 958| Target: Rs 1020| Stop Loss: Rs 914| Upside 6%
This counter has been a rank outperformer since last March (2020) lows. The stock prices have already tripled since then but still, there has been no stopping for this.
Recently, we witnessed a steep rise after breaking out from the intermediate hurdle of 650, which was then followed by a brief consolidation.
Due to Friday’s smart surge, we can see a confirmation of the ‘Bullish Flag’ pattern on the daily chart along with gargantuan volumes. Looking at the multiple time frame charts, we expect the Bull Run to continue in this stock.
Traders are advised to buy the stock for a short-term target of Rs.1020. The stop loss can be placed at Rs.914.
Jyothy Labs: Buy| LTP: Rs 167| Target: Rs 184| Stop Loss: Rs 159.80| Upside 10%
This FMCG stock has underperformed its larger peers significantly over the past many months. In fact recently also, the NIFTY FMCG index reached a new all-time high; whereas this stock is nowhere close to its previous high. But, the way the latter half of the week panned out for this stock, it looks promising now.
Price-wise, we can see a convincing breakout from the multi-month hurdle of 166. Importantly, we can see prices finally traversing the ‘200-EMA’ on the weekly chart; thereby entering a ‘Bullish’ territory after more than two years.
Thus, we recommend buying for a short-term price target of Rs.184. The stop loss needs to be maintained at Rs.159.80.
Expert: Aditya Agarwala, Senior Technical Analyst, YES SECURITIES
Fine Organic Industries: Buy| LTP: Rs 2944| Target: Rs 3200| Stop Loss: Rs 2800| Upside 8%
The stock has broken out from a narrow consolidation phase after taking support at the cluster of previous supports placed at 2800.
Further, volumes have been good in the recent up moves confirming bullishness. RSI turning up from the lower end of the bull territory i.e. 40-level is a sign of strength.
Kaveri Seed Company: Buy| LTP: Rs 765| Target: Rs 870| Stop Loss: Rs 700| Upside 13%
The stock has resumed uptrend after taking support at the neckline of the cup and handle breakout, further, volumes have been good in the pullback candles confirming the bullishness.
The Relative Strength Index or the RSI has also turned upwards after forming a positive reversal suggesting bullishness.
Godrej Consumer Products: Buy| LTP: Rs 891| Target: Rs 960| Stop Loss: Rs 855| Upside 7%
The stock has turned upwards after taking support at the trendline. Further, a trade above 908 levels can take the stock to levels of 960.
Technical Indicator, RSI has turned north after forming a positive reversal which confirms the bullishness intact.
Brokerage: SMC Global Securities Ltd
Axis Bank: Buy| LTP: Rs 750| Target: Rs 820-840| Stop Loss: Rs 700| Upside 9%
Axis Bank made a 52-week low at Rs. 400.15 on 25th September 2020, and a 52-week high of Rs. 799 on 16th February 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs. 665.52.
Short-term, medium-term and long-term bias is looking positive for the stock as it is trading in an uptrend since October, 2020.
Apart from this, the stock is forming an “Inverted Head and Shoulder” pattern on weekly charts, which is bullish in nature.
Last week, the stock tried to give the breakout of same but couldn’t hold the high levels but its consolidation from past few weeks indicates that there is a strong spurt in coming days.
Therefore, one can buy in the range of 740-745 levels for the upside target of 820-840 levels with a stop loss below 700 levels.
Disclaimer: The views and investment tips expressed by 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.
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