The bulls pushed the Indian market to new highs in the week gone by, with the S&P BSE Sensex hitting of 52,641 and the Nifty50 15,835. The indices closed with gains of about 1 percent even as small and midcap stocks outperformed.
The Nifty, however, couldn’t hold on to 15,800 levels on June 11 and closed shy of the critical support level at 15,799. There is stiff resistance neat 15,900-16,000 experts said. Traders should be cautious and avoid taking long positions overnight, they said, adding on the higher side, stiff resistance is placed at 16,000-16,040.
“The upside for the series is expected to remain capped around 16,040. The trend strength indicators are showing signs of exhaustion but there is no sign of any reversal in trend yet. India VIX is now trending within a new regime of 11-15 is another supporting evidence complementing the ongoing upmove,” Sacchitanand Uttekar, DVP–Technical (Equity), Tradebulls Securities, said.
The index closed the previous week above the five-week exponential moving average (EMA), which is now at around 15,430 and would act as crucial support for the index.
“For this week, 15,430 remains a key level to track on the lower side, as it also corresponds with its 20-days EMA zone. As long as the Nifty50 is able to trade above this level, the up move towards 1,6040 remains likely,” Uttekar said.
Sameet Chavan, Chief Technical & Derivatives Analyst at Angel Broking doesn't see the multi-year bull run coming to end but doesn’t rule out a pause or profit-booking.
“Traders are advised to take some money off the table and avoid aggressive bets overnight. The stock-specific approach still can be continued but one has to be very cautious,” he added.
Here is a list of 10 trading ideas by experts for the next 3-4 weeks:
Aditya Agarwala, Senior Technical Analyst, Yes Securities
Mahanagar Gas Ltd: Buy| LTP: Rs 1226| Target: Rs 1330| Stop Loss: Rs 1170| Upside 8%
The stock has resumed its upward journey after breaking out of a narrow consolidation pattern on good volumes. RSI has also turned upwards from the 58 level, confirming strength in the stock.
Larsen & Toubro Infotech Ltd: Buy| LTP: Rs 4,175| Target: Rs 4,450| Stop Loss: Rs 4,000| Upside 6%
The stock has turned upwards after taking support at the lower end of a broad trading range.
Volumes have been good in the recent bull candles, confirming the strength in the uptrend. RSI has also moved above the immediate hurdle of 64, confirming bullishness.
Dr Reddy’s Laboratories Ltd: Buy| LTP: Rs 5,451| Target: Rs 5,800| Stop Loss: Rs 5,250| Upside 6%
The stock has broken out of a key trendline resistance formed joining all major peaks on very good volumes triggering resumption of the uptrend.
Moreover, a sustained trade beyond 5,500 will take the stock higher to levels of 5,800. RSI is also suggesting a continuation of the uptrend in the coming sessions.
Sameet Chavan, Chief Technical & Derivatives Analyst, Angel Broking
The pharma space did exceedingly well last June 11 and some of these mid-cap names were completely on a roll.
This stock saw some renewed buying interest in the latter half of the last week. On June 11, we witnessed a smart surge in the counter along with sizable volumes.
It closed at its highest level in three years. The intensity, at which this breakout has come, indicates the beginning of the next leg of the rally.
This tyre manufacturer has given a colossal rally in the last 14 months and outperformed its peers by a fair margin.
Though the higher degree trend remains strongly bullish, we can see some fatigue in the prices as they have started to lose momentum over the past few sessions.
On June 10, we witnessed a shooting star pattern, a sign of exhaustion in prices, and the pattern got confirmed in the subsequent session as the stock closed below the low of the pattern.
Considering these factors, a short-term profit-booking in the stock cannot be ruled out.
Brokerage: SMC Global Securities
Power Grid Corporation of India Ltd: Buy| LTP: Rs 246| Target: Rs 276| Stop Loss: Rs 226| Upside 12%
The stock closed at Rs 246 on June 11 after hitting a 52-week high of Rs 248.80 during the day.
The 200-day exponential moving average (EMA) of the stock on the daily chart is at Rs 205.37. The stock is making higher highs and higher lows, which is bullish in nature.
Apart from this, it has formed an “Inverted Head and Shoulder” pattern on the weekly charts and has given the breakout along with high volume. Additionally, it closed above the neckline breakout which is positive.
Looking at the technical data, further upside is expected in the stock. Therefore, one can buy in the range of 240-243 for an upside target of 270-276, and a stop loss can be placed below 226.
TVS Motor Company Ltd: Buy| LTP: Rs 636| Target: Rs 700| Stop Loss: Rs 590| Upside 10%
The stock made a 52-week low of Rs 307.20 on June 12, 2020 and a 52-week high of Rs 666 on May 27, 2021. The 200-day EMA of the stock on the daily chart is at Rs 543.38.
The short, medium and the long-term biases are looking positive as the stock is trading in uptrend. It formed a “Bullish Pennant” pattern on the weekly charts and tried to give a breakout above it but couldn’t hold the high levels.
The consolidation from the past few weeks suggests that there could be a strong spurt in the coming days.
Therefore, one can buy in the range of Rs 625-630 for an upside target of Rs 690-700 and a stop loss can be placed below Rs 590.
Sacchitanand Uttekar, DVP–Technical (Equity), Tradebulls Securities
The price is trending close to its January 2021 high after 22 weeks of consolidation. Its weekly RSI has registered a breakout above its falling trend line level along with a crossover with its trigger line above 50 zone.
We expect strong outperformance by Tech Mahindra in the coming weeks, as the stock is ready to scale fresh life highs during the week and maintain its secular uptrend until Rs 950.
Escorts: Buy above 1,230| LTP: Rs 1,218| Stop Loss: Rs 1,190| Target: Rs 1,330| Upside 9%
Escorts has scaled above its 200-day EMA and holding well. Its daily ADX has confirmed a positive reading above 26; hence, we may see a sustainable trend towards the retracement of its previous declining wave placed at around 1,285-1,330.
UPL: Sell upto Rs 845| LTP: Rs 836| Stop Loss: Rs 860| Target: Rs 800| Downside 5%
A ‘Gravestone Doji’ on the weekly scale can be seen along with a fresh price breakdown below its five-day EMA after maintaining itself above it since April 29, 2021.
We believe the stock has already kick-started its corrective move, and could fall back to its five-week EMA zone at around 800.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
