"It would be very difficult for Nifty 50 to surpass Friday’s high of 22,795, in the coming week. Even if it does then we expect 22,900 – 22,950 to be a very strong hurdle," Mehul Kothari, DVP – Technical Research at Anand Rathi Shares & Stock Brokers, said in an interview to Moneycontrol.
Along with the trendline breakout, Coal India has also confirmed an ascending triangle breakout above Rs 465 mark. Hence, the stock is poised for a new life high above Rs 482, he believes.
Kothari, who has around 15 years of work experience in technical research, is bullish on Balrampur Chini Mills and DCM Shriram for the coming week.
Technically are you bullish on Coal India that has seen a resistance trendline breakout?
Along with the trendline breakout, Coal India has also confirmed an ascending triangle breakout above the Rs 465 mark. Hence, the stock seems to be poised for a new life high above Rs 482. However, the theoretical target for the pattern stands around Rs 500 and more whereas the support is placed at Rs 450.
Do you expect BHEL to hit record high of around Rs 400 in the coming weeks?
That would be too much to ask for in a short-term time frame. It is because BHEL has rallied non-stop over the past five quarters. Since the year 2023 the stock has rallied almost 5X from the low of Rs 66. Thus, we expect some profit booking post-election in this stock. For long term, the view remains positive.
Do you think the Nifty is likely to give a breakout of current consolidation on the higher side and surpass the 23,000 mark next week?
It would be very difficult for Nifty 50 to surpass Friday’s high of 22,795. Even if it does then we expect 22,900 – 22,950 to be a very strong hurdle since that is the higher end of rising channel, which Nifty is respecting for the last many months.
Even the Nifty Bank index seems to have made a short-term top near that 50,000 milestone. Thus, without the participation of banking stocks it would be a real test for the bulls in the coming week. On the downside, immediate support is placed at Friday's low of 22,348 followed by the 22,200 mark.
Is it better to stay away from Nifty IT index for the time being or is it the right time to take exposure to the space?
The index has already corrected around 15 percent in past one and a half month and there is no confirmation as of now for a bounce.
For the coming week, 31,900 can be the next support for the index which is a 78.6 percent retracement of the previous move. On the upside, bounce would get confirmed only above 34,300.
Your top 2 bets for next week?
During the week there was an important range breakout in Balrampur Chini above the Rs 396 mark. Along with breaking the range, the stock also confirmed a trendline breakout above the placement of its 200 DEMA (days exponential moving average).
Due to the selloff in the markets, the stock has again retested the breakout zone and looks lucrative for long with a short-term time frame.
Thus, we advise traders to go long in the stock near Rs 390 with a stop-loss of Rs 379 for the upside target of Rs 412 in the coming week.
As of now the stock is consolidating just above its 200 DEMA after a rally from Rs 900 levels. There will be a price breakout above Rs 982, which would confirm a bullish FLAG pattern.
Above Rs 987, even an Inverse Head and Shoulder pattern would get confirmed.
Thus, we advise traders to go long in the stock above Rs 982 with a stop-loss of Rs 950 for the upside target of Rs 1,045 in the coming one to three weeks.
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.
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