The market corrected 1.65 percent in the week ended April 19, but the strong recovery in the last session of the week minimised the losses and gave a bit of confidence to Dalal Street. The formation of bullish piercing line and double bottom kind of patterns on the daily charts indicated a positive bias for the coming sessions, though there may be volatility due to expiry of April derivative contracts in the current week.
Hence, 22,300 is expected to be a crucial hurdle for further upside in the Nifty 50 as the closing above can lift the index towards 22,500 mark, whereas 22,000 is expected to be an immediate support for the index as breaking the same can open doors for 21,800-21,700 levels again, experts said.
In week ended April 19, the Nifty 50 declined 372 points to 22,147 level and formed a bullish candlestick pattern with a long lower shadow on the weekly charts.
"Though it would be early to claim that we are completely out of the woods and, hence, caution is warranted. As far as levels are concerned, the psychological mark of 22,000 withholds the intermediate support, followed by the strong support of the 21,800-21,700 subzone," Osho Krishan, senior analyst for technical and derivative research at Angel One, aid.
On the higher end, he feels the 20 DEMA (day exponential moving average) placed at 22,300, followed by a bearish gap of 22,430-22,500, is likely to act as a daunting task in the near period and an authoritative breakthrough could only re-strengthen the lost momentum to the bulls of Dalal Street.
According to Nagaraj Shetti, senior technical research analyst at HDFC Securities, the short-term trend remains weak, but, having placed near the cluster support of around 22,000 level, one may expect upside bounce from the lows in coming sessions.
It is advisable to avoid aggressive overnight bets and patiently wait for the uncertainty to cool down, Osho said.
Moneycontrol collated a list of top 10 stock ideas from experts with three-four weeks perspective. The closing price of April 19 is considered for stock price return calculation.
Expert: Subash Gangadharan, senior technical/derivative analyst at HDFC Securities
Mazagon Dock Shipbuilders: Buy | LTP: Rs 2,189 | Stop-Loss: Rs 1,950 | Target: Rs 2,500 | Return: 14 percent
The recent downward correction seems to have halted. The stock has bounced back from the low of Rs 1,795, which is close to its previous intermediate lows and also to the 50-week SMA (simple moving average). The stock has been consolidating for the last two weeks above the 20 day and 50-day SMA.
Given the positive technical set up, we believe it is a matter of time before it starts moving higher. Buying can be initiated at CMP (Rs 2189), and more can be added on dips down to Rs 2,125. Upside target is at Rs 2,500 in the next 3-5 weeks. Place a stop-loss of Rs 1,950.
Titagarh Rail Systems: Buy | LTP: Rs 972 | Stop-Loss: Rs 850 | Target: Rs 1,150 | Return: 18 percent
After a sharp fall in the stock recently that saw it testing a low of Rs 780 and near the 50-week SMA, Titagarh has bounced back gradually over the last few weeks. The stock has taken out its recent swing high of Rs 980 in the process.
Momentum readings like the 14-week RSI (relative strength index) too have bounced back strongly from oversold levels.
With the intermediate technical set up too looking encouraging, one may look to buy Titagarh at CMP (Rs 972), add more on dips down to Rs 940 and wait for the upside target of Rs 1,150 in the next 3-5 weeks. Place a stop-loss of Rs 850.
ITD Cementation: Buy | LTP: Rs 362 | Stop-Loss: Rs 320 | Target: Rs 420 | Return: 16 percent
The stock is now in a healthy short term uptrend after making a double bottom pattern around Rs 260 levels. Last week, the stock has broken out of its recent trading range on the back of healthy volumes, which augurs well for the uptrend to continue.
Technical indicators are giving positive signals as the stock is trading above the 20-day SMA and momentum indicators like the 14-day RSI are in rising mode and have crossed their previous highs, suggesting that momentum is picking up.
Buying can be initiated at CMP (Rs 362), and more can be added on dips down to Rs 345. Upside target is at Rs 420 in the next 3-5 weeks. Place a stop-loss of Rs 320.
Expert: Amol Athawale, VP-technical research at Kotak Securities
SAIL: Buy | LTP: Rs 146 | Stop-Loss: Rs 140 | Target: Rs 156 | Return: 7 percent
After the remarkable up move of the last few weeks, the counter (Steel Authority of India) witnessed short-term correction from the higher levels. However, closing above the important retracement zone on the daily scale suggest bullish continuation chart formation.
Therefore, the counter is likely to resume its uptrend from the current levels in the near term.
ICICI Bank: Buy | LTP: Rs 1,067 | Stop-Loss: Rs 1,030 | Target: Rs 1,150 | Return: 8 percent
After the recent selloff in the counter from the higher levels, the downward momentum had stopped. On daily charts, the counter has found support and reversed its trend from its important support zone along with Bullish Piercing Line candlestick pattern. The formation suggests at further bullish movement from the current levels.
Bharat Electronics: Buy | LTP: Rs 233 | Stop-Loss: Rs 223 | Target: Rs 250 | Return: 7 percent
On the weekly charts, the counter is into a rising channel chart formation with higher high and higher low series pattern. Additionally, the technical indicators like ADX (average directional index) and RSI is also indicating further up trend from current levels which could boost the bullish momentum in the near future.
Expert: Riyank Arora, technical analyst at Mehta Equities
Imagicaaworld Entertainment: Buy | LTP: Rs 82.5 | Stop-Loss: Rs 74 | Target: Rs 90/100 | Return: 21 percent
The stock has touched its important anchor VWAP (volume-weighted average price) support mark of Rs 80.00 on both its daily and weekly charts. With the RSI (14) on daily charts at 52.74, overall momentum is expected to pick up well in the stock.
A strict stop-loss should be kept at Rs 74 mark for potential upside targets of Rs 90 and Rs 100. A strong technical structure with minimal risk makes Imagicaa a strong buy at current levels.
Lupin: Sell | LTP: Rs 1,548 | Stop-Loss: Rs 1,590 | Target: Rs 1,450 | Return: 6 percent
The stock has given a good breakdown below its immediate support mark of Rs 1,553 on its daily charts. With the RSI (14) near 37.10 and volumes in Friday's session equivalent to its average (30) days volume, it is expected that the stock should head lower towards potential targets of Rs 1,450 and below.
A strict stop-loss should be kept at the Rs 1,590 mark to manage risk well on the short.
By Om Mehra, technical analyst at SAMCO Securities
Bharat Dynamics: Buy | LTP: Rs 1,833 | Stop-Loss: Rs 1,750 | Target: Rs 1,980 | Return: 8 percent
The stock of Bharat Dynamics (BDL) has bounced after forming a double bottom pattern in a daily time frame with significant volumes. The stock appears to be strongly placed above the middle Bollinger band and RSI remains above 60 levels.
If the stock manages to close above the Rs 1,850 level, it could move higher further. Hence, based on the above technical structure, one can initiate a long position at CMP Rs 1,833 for a target price of Rs 1,980. The stop-loss can be kept at Rs 1,750.
CG Power and Industrial Solutions: Buy | LTP: Rs 534 | Stop-Loss: Rs 505 | Target: Rs 580 | Return: 8.6 percent
The stock has rebounded strongly from its support zone, accompanied by significant volumes over the past few days. Strengthening indicators include the RSI holding steady at 64 levels. Additionally, the previous resistance has now become support confirms a bullish setup.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 531, for a target price of Rs 580. The stop-loss can be kept at Rs 505.
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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