Amid all the whipsaw moves, the Nifty50 managed to keep up its bullish stance and settled on a positive note for the consecutive week ended February 23 with 0.78 percent gains.
From a technical standpoint, the index has certainly managed to hold the higher ground, and dips are auguring well for the bulls, but the range is narrowing down as we head into an uncharted territory. For now, the 22,000 mark is likely to provide a firm cushion for any intra-week blip, followed by the 20 DEMA (day exponential moving average) of 21,900-21,850, while any further blip could disrupt the intermediate trend for the index.
On the higher end, finding resilience is challenging in uncharted territory, though 22,350-22,500 could be seen as the following potent targets for Nifty in the current week, provided banking participates. From hereon, if the benchmark index has to sustain at higher levels, contribution from the heavyweight banking space is a must. Since it is struggling around the bearish gap, it is better to wait for further clarification to project higher levels in Nifty.
Here are two buy calls for short term:
Computer Age Management Services: Buy | LTP: Rs 3,113 | Stop-Loss: Rs 2,990 | Target: Rs 3,320 | Return: 7 percent
CAMS has been in a secular uptrend, hovering well above all its major EMAs on the daily time frame. Also, the counter recently gained strong traction and witnessed a multi-month breakout to clock a fresh 52-week high, which was backed by robust volumes.
The technical parameters are very much inline with the bullish undertones and the stock seems poised to continue its march in the northward trajectory. Hence, we recommend buying CAMS around Rs 3,110-3,100, with a stop-loss of Rs 2,990 and target of Rs 3,320.
Shriram Finance: Buy | LTP: Rs 2,445.45 | Stop-Loss: Rs 2,330 | Target: Rs 2,620 | Return: 7 percent
Shriram Finance has been in a cycle of higher highs – higher lows for quite a long time and is currently placed near its all-time high. The undertone seems robust as any blip towards the 21 DEMA, augurs well for the buyers.
From a technical point of view, the counter has resurged from its higher lows and is now ready to propel into uncharted territory. The 14-period RSI (relative strength index) also indicates a positive crossover, adding to the bullish quotient in the counter. Hence, we recommend buying Shriram Finance around Rs 2,440-2,430 with a stop-loss of Rs 2,330 and target of Rs 2,620.
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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