The market recorded 1.8 percent gains in the concluding week of 2023 and formed a long bullish candlestick pattern on the weekly charts after Doji sort of a candle formation in the previous week, indicating that bulls hold the strong position.
Even the higher highs, higher lows continued week-after-week and the momentum indicators are showing positive bias, hence, experts expect the Nifty 50 to focus on 21,800-22,000 levels in the coming weeks after the ongoing consolidation, while taking support at 21,700-21,500 levels and advising buy-on-dips.
The Nifty 50 ended at 21,731 on December 29, rising 8 percent for the month and 20 percent for the year.
"While maintaining a bullish outlook in the absence of weakness signs, it is advised not to adopt an aggressive stance. Instead, booking profits at higher levels is recommended. Any market dip should be viewed as a buying opportunity unless there are clear indications of a major price correction," Rajesh Bhosale, technical analyst at Angel One, said.
He feels that immediate support is observed around 21,600, followed by 21,500, while strong support lies around the week's low around the 21,300 mark.
Although prices are in an uncharted territory with no prominent resistance visible, 21,850 followed by 22,000 presents an immediate hurdle, considering the overbought conditions, he said.
Jigar Patel, senior manager - equity research at Angel One, feels there may still be some room for further upside in the Nifty index, but it could potentially be the final phase of the rally, followed by heavy profit booking. He sees the next psychological hurdle for the Nifty at 22,000, followed by 22,400. "These levels could indicate the beginning of a corrective move. Traders are advised to maintain a cautious approach with regards to long positions."
Moneycontrol collated a list of top 10 stock ideas from experts with 3-4 weeks perspective. The closing price of December 29 is considered for calculation of stock return:
Expert: Omkar Patil, technical & derivatives analyst - institutional equity at Ashika Group
IRCTC: Buy | LTP: Rs 887.5 | Stop-Loss: Rs 855 | Target: Rs 970 | Return: 9 percent
In mid-December, the IRCTC (Indian Railway Catering & Tourism Corporation) stock broke out of a long consolidation period that had been forming since April 2022. This breakout was accompanied by increased trading volumes, indicating strong interest in the stock.
After a brief consolidation, the stock has started to move up again, with volumes picking up, suggesting a continuation of the upward trend. The short-term average (12-day EMA - exponential moving average) provides additional support to the current uptrend.
Going ahead we expect the prices to move higher till the mark of Rs 970 where the stop-loss must be Rs 855 on a daily closing basis.
Deepak Nitrite: Buy | LTP: Rs 2,481.20 | Stop-Loss: Rs 2,390 | Target: Rs 2,720 | Return: 9.6 percent
Deepak Nitrite stock has broken out from a solid base that was established between Rs 2,380-1,800 levels over the past year. The breakout, accompanied by substantial trading volumes. Additionally, the MACD (moving average convergence divergence) indicator has experienced a positive crossover above the zero-line, signaling the presence of positive momentum in the trend.
Going ahead we expect the prices to move higher till the mark of Rs 2m720 where the stop-loss must be Rs 2,390 on a daily closing basis.
Godrej Consumer Products: Buy | LTP: Rs 1,131.20 | Stop-Loss: Rs 1,090 | Target: Rs 1,225 | Return: 8.3 percent
Godrej Consumer Products is on an upward trend, moving within an Ascending channel. The stock has recently broken out of a Rounding bottom pattern, marked by a rising Gap and increased trading volumes, confirming the breakout. The MACD rising above the zero line indicates the presence of positive momentum in the upward trend.
Going ahead we expect the prices to move higher till the mark of Rs 1,225, where the stop-loss must be Rs 1,090 on a daily closing basis.
Expert: Nagaraj Shetti, senior technical research analyst at HDFC Securities
Vedanta: Buy | LTP: Rs 258.55 | Stop-Loss: Rs 240 | Target: Rs 282-307 | Return: 19 percent
After breaking above the cluster resistance of Rs 252-253 levels in week before last, the metal stock - Vedanta has shifted into a consolidation. The positive chart pattern like higher tops and bottoms is intact and present consolidation is expected to be a buy on dips opportunity. The upside breakout of Inverted Head and Shoulder pattern is still intact, volume and momentum indicators are showing positive signal.
Buying can be initiated in Vedanta at CMP (Rs 258.55), add more on dips down to Rs 249, wait for the upside targets of Rs 282 and Rs 307 in the next 3-5 weeks. Place a stop-loss of Rs 240.
Divis Laboratories: Buy | LTP: Rs 3,903.9 | Stop-Loss: Rs 3,680 | Targets: Rs 4,225-4,370 | Return: 12 percent
The stock price has witnessed a sustainable upside bounce this week, after showing a consolidation pattern in the last few weeks. Currently, the stock price is in an attempt of upside breakout of the hurdle at Rs 3,900 levels. Hence, a sustainable move above this hurdle is expected to be a decisive upside breakout of the hurdle for near term. Volume has started to expand and weekly RSI (relative strength index) shows positive indication.
Buying can be initiated in Divis Labs at CMP (Rs 3,903.9), add more on dips down to Rs 3,800, wait for the upside targets of Rs 4,225 and Rs 4,370 in the next 3-5 weeks. Place a stop-loss of Rs 3,680.
Expert: Om Mehra, technical analyst at SAMCO Securities
Marico: Buy | LTP: Rs 548.5 | Stop-Loss: Rs 532 | Target: Rs 580 | Return: 6 percent
The stock has recently emerged from a period of consolidation marked by higher volumes. Notably, the current price comfortably trades above the 20-day and 50-day moving averages, signaling a positive trend. The RSI is on an upward trajectory and is steady above the 60 level indicating sustained buying interest.
Moreover, a Double Bottom pattern emerged confirming positive price action. Previously, the stock encountered strong resistance at Rs 547 levels and now it is exhibiting strength suggesting a potential breakout.
Marico is trading at CMP Rs 548.5 and we anticipate that the stock to scale higher towards Rs 580. Stop-Loss can be kept at Rs 532.
Torrent Power: Buy | LTP: Rs 933.85 | Stop-Loss: Rs 880 | Target: Rs 1,030 | Return: 10 percent
The stock has consistently formed higher highs and higher lows in the weekly timeframe indicating that the primary trend remains bullish. Following a minor pullback, the stock has resumed its upward movement, accompanied by significant trading volumes. The stock continues to trade above the critical Rs 915–920 support zone.
The RSI is trading above 65 levels, and the moving average convergence divergence (MACD) has risen above the signal line providing bullish signals. Additionally, there has been a notable increase in delivery volume up by 32.37 percent compared to the 5-day average.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 933.85 for a target price of Rs 1,030. Stop-loss can be kept at Rs 880.
Expert: Shrikant Chouhan, head equity research at Kotak Securities
Mahindra and Mahindra: Buy | LTP: Rs 1,729 | Stop-Loss: Rs 1,660 | Target: Rs 1,850 | Return: 7 percent
On the daily charts, the counter is into a bullish trend with higher high and higher low series formation. 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.
Tech Mahindra: Buy | LTP: Rs 1,272.65 | Stop-Loss: Rs 1,230 | Target: Rs 1,360 | Return: 7 percent
On the monthly scale, the counter is into a rising channel chart formation with higher high and higher low series pattern. After the uptrend rally, the counter closed above its breakout zone. Furthermore, the bullish continuation chart structure indicates up move to continue in the coming horizon.
Granules India: Buy | LTP: Rs 405.5 | Stop-Loss: Rs 390 | Target: Rs 435 | Return: 7 percent
The counter has shown a robust rally from the lower levels in the recent weeks. Additionally, it is continuously trading in an ascending triangle chart formation along with decent volume activity. Therefore, the overall formation indicates a likely breakout for a new leg of up move from the current levels.
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.
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!
