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Hot Stocks: Bet on Infosys, JSW Energy, GAIL India for the short term

The immediate trading range for the Nifty 50 is anticipated to be between 21,500 and 21,800.

January 20, 2024 / 05:52 IST
Expert bets on these 3 largecaps for short term
     
     
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    The Nifty 50 concluded the session on a positive note at 21,622, managing to reclaim the 21-day EMA (exponential moving average) of 21,551. Despite forming a small Doji candle, the ability to stay above the previous day’s high suggests the possibility of a bullish reversal.

    Moving forward, it's crucial for the index to maintain ground above the 21-day EMA, prompting a swifter retracement and triggering short-covering. The immediate trading range for the index is estimated at 21,500 to 21,800.

    Conversely, Nifty Bank experienced volatility despite a strong initial session. With mounting pressure on heavyweight HDFC Bank and upcoming results from ICICI Bank and Kotak Mahindra Bank, the index could face continued strain.

    The robust support zone of 45,400-44,800, formed by a bullish gap, is critical, and breaching it might lead to a more significant corrective move. Currently, Bank Nifty needs to establish a foundation at the support zone while aiming for a rapid ascent above the immediate resistance at 46,100.

    Here are three buy calls for next 3-4 weeks

    Infosys: Buy | LTP: Rs 1,659 | Stop-Loss: Rs 1,600 | Target: Rs 1,800 | Return: 8.5 percent

    The stock experienced a significant breakout this week, surpassing its resistance level at Rs 1,620. The breakout was notable for its price intensity, accompanied by a substantial increase in trading volumes. Interestingly, the previous level of Rs 1,620 has now transformed into a support, highlighting a positive undertone in the trend.

    Additionally, the relative strength index (RSI) is above the 50 mark, indicating the presence of positive momentum in the stock.

    Going ahead, we expect the prices to move higher till the mark of Rs 1,800 where the stop-loss must be Rs 1,600 on a daily closing basis.Image1319012024

    JSW Energy: Buy | LTP: Rs 501 | Stop-Loss: Rs 485 | Target: Rs 550 | Return: 9.7 percent

    The stock is presently trading at an all-time high, signaling strong momentum in its current trend. Notably, the stock has recently witnessed an upsurge in trading volumes, underscoring the enthusiasm in the trend.

    Furthermore, the RSI being above the 50 mark indicates the presence of positive momentum, further affirming the strength and potential continuation of the upward trend in JSW Energy.

    Going ahead, we expect the prices to move higher till the mark of Rs 485 where the stop-loss must be Rs 550 on a daily closing basis.

    Image1419012024

    GAIL India: Buy | LTP: Rs 168.3 | Stop-Loss: Rs 162 | Target: Rs 183.5 | Return: 9 percent

    The trend in stock has gained momentum, evident from the increasing steepness in its trajectory. The recent upward movement, originating from the lower levels around Rs 132, was accompanied by notable trading volumes, indicating a substantial long buildup in prices.
    Additionally, the support observed during price dips by the 12-day exponential moving average (EMA) further affirms the presence of an uptrend. Going ahead, we expect the prices to move higher till the mark of Rs 183.5, where the stop-loss must be Rs 162 on a daily closing basis.

    Image1519012024

    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.

    Omkar Patil
    Omkar Patil is the Technical & Derivatives Analyst - Institutional Equity at Ashika Group. Before joining Ashika, he was working with GEPL Capital.
    first published: Jan 20, 2024 05:48 am

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