The daily price action has formed Doji Candlestick pattern indicates indecisiveness among the participants and formed higher High -low compared to the previous session and has closed above previous sessions' high suggests positive bias.
The Nifty closed at 14,823 with a gain of 98 points (0.67 percent) while BSE Sensex gained 256 points (0.52 percent).
With the current close, the index has broken out in the past 3-4 sessions, consolidation range (14,700-14,450) on a closing basis which remains a positive sign. On the daily chart, Nifty continues to hold its 100-day SMA (14,525) which acts as support on the short term charts.
The next higher levels to be watched are around 14850 levels. Any sustainable move above 14,850 levels may cause momentum towards 14,950- 15,000 levels. On the downside, any violation of an intraday support zone of 14,750 levels may cause profit booking towards 14,600-14,550 levels.
The daily strength indicator RSI and the momentum indicator Stochastic both have turned bullish along with positive crossover which is a positive bias.
Here is a list of three stocks which can be considered for next week:
Glenmark Pharma: Buy at Rs 593 | Stop Loss: Rs 573 | Target: Rs 615-635
With current close, the stock has decisively broken out of its past two week's 'Consolidation Range' (Rs 590-547) on a closing basis which remains a positive sign. This breakout is accompanied with huge volumes which supports increased participation in a rally. The daily and weekly strength indicator RSI is placed positive along with positive crossover which supports bullish sentiments ahead. This buying momentum was observed from 20-day SMA (Rs 556) which remains a crucial support zone to watch for.
Adani Ports and Special Economic Zone: Buy at Rs 765 | Stop Loss: Rs 738 | Target: Rs 795 - 810
The stock is in a strong up trend across all the time frames indicating bullish sentiments. Since past 2-3 weeks tha stock has managed to hold its 50-day SMA support zone around Rs 731 levels which is a crucial level to watch for. The stock has gained huge volumes near its multiple support zone of Rs 700 levels which signals increased buying at lower levels.
Gujarat Fluorochemicals: Buy at Rs 850 | Stop Loss: Rs 820 | Target: Rs 885-920
The stock is in a strong up trend and continues to form a series of higher Top and higher Bottom formation indicating sustained up trend. Rise in volumes on every breakout signals increased participation. The stock is well placed above its 20, 50 and 100 day SMA which support bullish sentiments ahead. The daily and weekly strength indicator RSI is placed positive along with positive crossover which supports bullish sentiments ahead.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.