Sudeep Shah of SBI Securities recommends buying Laurus Labs for 2025. "Laurus Bas has strongly outperformed the frontline indices for the last couple of weeks. Also, it is currently, trading above its short and long-term moving averages, he said in an interview to Moneycontrol.
Further, he is bullish on Ipca Laboratories, and Triveni Engineering for 2025.
"Ipca Laboratories has formed a strong base near 20-week EMA level and thereafter witnessed a resume its northward journey. The weekly RSI is in a super bullish zone, while Triveni Engineering has given a stage-2 cup pattern breakout on a weekly scale. As the stock is trading near all-time high, all the moving averages and momentum-based indicators are suggesting strong bullish momentum in the stock, said the Head of Technical and Derivative Research at SBI Securities.
However, he is bearish on the Nifty FMCG index.
Q: Are you super bullish on Greaves Cotton?
Yes, the stock has given a stage-2 cup breakout on a weekly scale. This breakout is confirmed by above 50-week average volume. In addition, it has formed a sizeable bullish candle on breakout week, which adds strength to the breakout.
As the stock is trading at all-time high, all the moving averages and momentum-based indicators are suggesting strong bullish momentum in the stock. The daily and weekly RSI (Relative Strength Index) is in a super bullish zone as per RSI range shift rules. Hence, we are bullish on Greaves Cotton.
What are your top 2 bets for 2025?
On a weekly scale, the stock has marked a high of Rs 1,708, and thereafter, it has witnessed throwback for 9 weeks. Interestingly, during the period of throwback, the volume activity was mostly below average, which indicates routine decline after a sharp upside rally. The throwback was halted near the 20-week EMA (Exponential Moving Average) level. The stock has formed a strong base near 20-week EMA level and thereafter witnessed a resume its northward journey. The weekly RSI is in a super bullish zone. Hence, we feel it is likely to test the level of Rs 1,800, followed by Rs 1,950 in the medium-term.
Triveni Engineering and Industries
The stock has given a stage-2 cup pattern breakout on a weekly scale. This breakout is confirmed by above 50-week average volume. As the stock is trading near all-time high, all the moving averages and momentum-based indicators are suggesting strong bullish momentum in the stock. As per the measure rule of cup pattern, the upside target is placed at Rs 650 level in the medium-term.
What is the possibility of Nifty moving back towards November low, though the volumes remain low?
In the December series, Nifty futures experienced a pullback rally during the first half of the month, reaching a high of 24,930. However, the index subsequently resumed its downward trajectory, marking the third consecutive series of negative returns.
Following a sharp 4.77% decline in the previous week, this week (ended December 27) was relatively subdued, with the index trading within a narrow range. Notably, Nifty formed Doji candlestick patterns on all four trading sessions, reflecting indecisiveness among market participants. The index moved within a range of just 291 points, the narrowest since June 18, 2024.
Currently, Nifty is trading below its 20, 50, and 100-day EMAs, all of which are trending downward. Over the past four sessions, the index has hovered near its 200-day EMA (23694). Meanwhile, the daily RSI remains in bearish territory, positioned below its signal line.
Talking about crucial levels, the zone of 23,550-23,500 will act as immediate support for the index. Any sustainable move below the level of 23,500 will lead to a sharp correction upto the level of 23,200, followed by 22,900 in the short term.
On the upside, the zone of 23,950-24,000 will act as a crucial hurdle for the index. Any sustainable move above the level of 24,000 will lead to a sharp pullback rally upto the level of 24,300, where 50 and 100-day EMA is placed.
Do you see the January series going to be a strong month for the market?
No, currently, the chart structure is indicating sideways to bearish momentum for the next couple of weeks. Tracking seasonality, over the past 17 years, the January month has often exhibited a negative trend for Nifty. On 11 occasions, the index has concluded on a negative note with an average loss of 4.79%, while on 6 occasions, it has ended on a positive note with an average gain of 5.67%. The average return for Nifty in the January series has been -1.10%. Over the past 17 years, January has consistently shown an average volatility of 9 percent for the Nifty index.
Is it the time to buy Escorts Kubota?
No, currently, the stock is trading below its short and long-term moving averages. These averages are in falling mode. Further, the daily RSI is in the super bearish zone as per RSI range shift rules. Hence, we recommend to avoid Escorts for now.
Do you advise buying Laurus Labs for 2025?
Yes, since the last week of March 2023, the stock is marking the sequence of higher tops and higher bottoms on a weekly scale. The stock has strongly outperformed the frontline indices for the last couple of weeks. Also, currently, trading above its short and long-term moving averages. These averages are in rising trajectory, and they are in the desired sequence, which suggest trend is strong.
Hence, we recommend buying Laurus Labs for 2025.
Has the FMCG index bottomed out? Will it be a star performer in 2025?
No, we do not expect Nifty FMCG to be a star performer in 2025. The index is currently trading below its short and long-term moving averages, reflecting overall bearish momentum. Indicators and oscillators further confirm this weakness.
However, on the daily chart, the index is forming an Adam and Adam Double Bottom pattern. A sustainable move above 58800 could lead to a neckline breakout, potentially triggering a short-term pullback. Conversely, a slip below 55,400 may resume the downtrend.
While a short-term bounce is possible, sustained outperformance in 2025 appears unlikely at this stage.
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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