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As Nifty50 eyes 16,000, technical experts recommend these 10 trading ideas

The Nifty50 witnessed a breakout above its previous high of 15,431 and formed a bullish continuation rounding bottom formation which leads to the projection of 16,600 mark on the index, said an expert

June 07, 2021 / 10:34 AM IST
 
 
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Nifty50 hit a fresh record high last week and climbed the level of 15,700. Experts now say that the next logical target is placed above 16,000. The S&P BSE Sensex rallied 1.3 percent while the Nifty50 was up 1.5 percent for the week ended June 4.

The momentum seems to have slowed down but the Nifty50 is still trading above crucial support levels, and any minor dips should get bought, suggest experts.

“The Nifty continues to remain bullish above 15,470 while the options data is suggesting 15,700 as the pain point for Call writers. We expect more upside if this level is crossed and we may see the Nifty testing the next resistance area of 15,900-16,000,” Rahul Sharma - Head, Technical and Derivatives Research, JM Financial Services said.

Kavita Jain, Sr.Equity Research Analyst at Arihant Capital Markets said that on a weekly chart, the Nifty50 witnessed a breakout above its previous high of 15,431 and formed a bullish continuation rounding bottom formation which leads to the projection of 16,600 mark on the index.

Given that the index is headed higher, here are 10 trading ideas for next 3-4 weeks, as recommended by technical analysts:

Close

Expert: Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

L&T Finance Holdings: Buy| LTP: Rs 97.45| Stop Loss: Rs 92.50| Target: Rs 108| Upside 11%

The stock fell sharply in March-April and now it is witnessing a similar recovery. So far it has crossed 38.2% retracement of the fall and is expected to go for a deep retracement. The short-term momentum indicator is in line with the recovery

Ashok Leyland: Buy| LTP: Rs 128.40| Stop Loss: Rs 123| Target: Rs 144| Upside 12%

In the week gone by, the share price formed a bullish outside bar pattern on the weekly chart which reinforces the uptrend in the counter.

Tata Chemicals: Buy| LTP: Rs 746| Stop Loss: Rs 712| Target: Rs 833| Upside 11%

The stock formed a base for itself above the 20-weeks moving average and started a fresh leg up in the last week. On the way up, it has broken out from a falling channel in the last session. The daily momentum indicator is in sync with the breakout.

Expert: Sameet Chavan, Chief Technical & Derivatives Analyst at Angel Broking

Federal-Mogul Goetze (India) | LTP: Rs 326.50 | Target price: Rs 365 | Stop loss: Rs 307 | Upside: 12%

A lot of mid-cap counters that did not participate in the rally last year have started to witness some catch-up moves and this stock is one of them.

In the last few weeks, we witnessed a good base building in this stock and the volumes have been extraordinary in the up move from the recent low. For the last three months, the stock had been struggling around Rs 310 and recently it succeeded in going beyond this hurdle.

In this course of action, prices managed to surpass the 200-day SMA convincingly, which is an encouraging sign.

Grasim Industries | LTP: Rs 1,507 | Target price: Rs 1580 | Stop loss: Rs 1450 | Upside: 5%

We have seen a stupendous move in this stock since March 2020-lows. It has already given nearly three-fold returns in merely 14 months that, too, without any meaningful correction.

In the last couple of months, the stock went through a good time-wise correction and a minor price correction, but now we can see it resuming its upward trend as it unfolds the next leg of the rally.

Friday’s upward move led the stock to its new record highs along with higher than average daily volume.

In addition, the RSI-smoothened oscillator has crossed the 70 mark, which may provide impetus to the move.

Expert: Kavita Jain, Sr Equity Research Analyst, Arihant Capital Markets

Tata Chemical: Buy| LTP: Rs 746| Target: Rs 790-820| Stop Loss: Rs 700| Upside 10%

The counter is witnessing a breakout above its downward sloping channel resistance on the daily chart amid rising volume.

Leading indicator, RSI is placed at 60 which is showing further price strength. On a higher time frame, the counter formed a Morning Star pattern, which is a bullish reversal candlestick pattern.

The support for the stock is heading towards its previous highs of Rs 790-820.

HDFC: Buy on decline up to Rs 2,550| LTP: Rs 2619| Target: Rs 2742-2820| Stop Loss: Rs 2450| Upside 7%

The counter is witnessing a breakout from its downward sloping channel resistance on the daily chart.

On a higher time frame, the counter has formed a base towards its previous support of 2440 and closed above the 10-weeks period SMA. Leading indicator RSI is standing at 58.52 levels and MACD Histogram is also showing strength.

NMDC: Buy| LTP: Rs 193.30| Target: Rs 204-212| Stop Loss: Rs 179| Upside 10%

On the weekly chart, the counter is placed above all its moving averages after two weeks of correction from the highs of 212.

It has formed a Morning Star with rising volume and long built-up with rising price and OI in the derivative segment, too. One can add NMDC on decline up to 185 for the possible target of 204-212 in the next two weeks.

Brokerage: SMC Global Securities

BHEL: Buy| LTP: Rs 73.90| Target: Rs 85-88| Stop Loss: Rs 66| Upside 19%

The stock closed at Rs 73.90 on 04th June, 2021. It made a 52-week low at Rs 26.40 on 04th June, 2020 and a 52-week high of Rs. 77.70 on 20th May, 2021.

The 200-days Exponential Moving Average (DEMA) of the stock on the daily chart is currently placed at Rs 46.68.

The stock is trading in higher highs and higher lows band on the charts which is bullish in nature. Apart from this, the stock has formed a “Bull Flag” pattern on the daily charts and has given a pattern breakout along with high volumes.

The stock has managed to close above the same so follow-up buying may continue for the coming days. Therefore, one can buy in the range of 72-72.50 levels for the upside target of 85-88 levels with a stop loss below 66 levels.

Tata Motors: Buy| LTP: Rs 334| Target: Rs 360-370| Stop Loss: Rs 300| Upside 10%

The stock closed at Rs 334.95 on 04th June, 2021. It made a 52-week low of Rs 91.80 on 17th June, 2020 and a 52-week high of Rs. 357 on 03rd March, 2021.

The 200-Days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 246.83.

After a massive upside move, the stock has been consolidating in a wide range with a positive bias, and has also formed a “Bullish Pennant” pattern on the weekly charts which is considered to be bullish.

Last week, the stock ended with over 5 percent gains and has given the pattern breakout with high volumes, closed above the same so further buying is expected from the stock from current levels.

Therefore, one can buy in the range of 325-329 levels for the upside target of 360-370 levels with a stop loss below 300 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.
Kshitij Anand is the Editor Markets at Moneycontrol.

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