Nandish Shah, Senior Derivative & Technical Analyst at HDFC Securities
Nifty continued its upward journey for the sixth day in a row on the back of strong global cues. At close, Nifty was up by 25 points at 17,624. From the low of March 28, 2023, Nifty has witnessed a rally of more than 700 points in the span of just 6 trading sessions.
In the process, the Nifty reversed its recent short term downtrend and also closed above the 200-day EMA (exponential moving average) which is currently placed at 17,517. Moreover, Nifty also managed to close above its 11 and 20-day EMA which is currently placed at 17,352 and 17,325 respectively.
Indicators and oscillators like RSI (relative strength index), MFI (money flow index), MACD (moving average convergence divergence) and DMI (directional movement index) have turned bullish on the daily chart of Nifty. Weekly RSI has also given bullish crossover on the Nifty weekly chart, which adds strength in the current upswing of the Nifty. US bond yields and Dollar Index have been in to bearish trend recently, which augers well for the equity markets.
Even after a sharp rise in the Nifty from the recent lows, FIIs long to short ratio in the Index Future is still placed at an oversold levels of 0.22 which in-turn indicates there is a higher probability of more short covering by them from hereon. In the option segment we have seen Put writing at 17,300-17,500 levels.
Therefore, our advice is to remain bullish with stop-loss of 17,300 levels. On the upside swing high of 17,800 (March 6, 2023) could act as an immediate resistance for Nifty. Above 17,800, Nifty could move towards next resistance level of 17,924 and 18,135.
Here are three buy calls for the next 3-4 weeks:
Surya Roshni: Buy | LTP: Rs 729 | Stop-Loss: Rs 670 | Target: Rs 790-815 | Return: 12 percent
The stock price has broken out on the daily chart to close at highest level since October 2021. It has been forming bullish higher top higher bottom formation on the daily chart.
RSI and MFI oscillator is placed above 60 and rising upwards on the daily chart, indicating strength in the current uptrend. Plus DI (directional indicator) is trading above minus DI while ADX (average directional index) line is placed above 20, indicating momentum in the current uptrend.
Brigade Enterprises: Buy | LTP: Rs 491 | Stop-Loss: Rs 462 | Target: Rs 525-545 | Return: 11 percent
The stock price has broken out on the daily chart from the downward sloping trendline, adjoining the highs of September 12, 2022 and February 13, 2023. It has broken out on the daily chart where it closes at highest level since February 17, 2023.
Momentum Oscillators - RSI (11) and MFI (10) is sloping upwards and placed above 60 on the daily chart, indicating strength in the stock. Real estate stocks are looking good on the short term chart.
Just Dial: Buy | LTP: Rs 616 | Stop-Loss: Rs 570 | Target: Rs 663-682 | Return: 11 percent
The stock price broke out on the daily chart with higher volumes where it closes at highest level since February 21, 2023. Stock price has formed strong base around Rs 570 levels.
Short term trend of the stock turned positive as stock price closed above its 5, 11 and 20-day EMA. Momentum indicators and oscillators are showing strength in the stock.
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!
