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Hot Stocks | Can bet on Aurobindo Pharma, Sun Pharma and Maharashtra Seamless for short term

On the technical front, secondary oscillators suggest that markets are likely to remain volatile in the coming sessions with wild swings on both sides.

December 02, 2020 / 07:43 AM IST

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Indian markets started the week on a positive note with Nifty ending above the key resistance level of 13,100 on December 1, boosted by the better-than-expected GDP data.

Bank Nifty also surged high and surpassed 29,800 levels led by the PSU bank stocks.

On the technical front, secondary oscillators suggest that markets are likely to remain volatile in the coming sessions with wild swings on both sides.

However, a decisive move in Bank Nifty above 30,000 would add further buying momentum to the index.

Close

As far as Nifty is concerned, now 13,000 would act as key support levels for the coming sessions as call writers at 13,000 strikes were seen unwinding their positions while put writers added hefty open interest at 13,000 put strike.

Any dip in prices should be used to create fresh longs. On the higher side, Nifty could test 13,300 levels with Bank Nifty likely to outperform.

Here are three buy calls for the next 2-3 weeks:

Aurobindo Pharma | LTP: Rs 896.75 | Target price: Rs 983 | Stop loss: Rs 825 | Upside: 10%

In the recent past, the stock saw a sharp rally from Rs 753 to Rs 863 after forming a double bottom pattern on daily charts.

However, since then the prices were seen consolidating in the range of Rs 875 to 825 with the formation of the lower high and lower bottom patterns.

This week, the stock has managed to give a breakout above the Bullish Flag pattern, visible on daily charts.

The additional volumes with breakout suggest the next upswing in the prices.

Sun Pharmaceutical Industries | LTP: Rs 541 | Target price: Rs 594 | Stop loss: Rs 500 | Upside: 10%

After testing Rs 455 levels in the recent past, the stock saw an almost V-shaped recovery and surpassed its short and long-term moving averages on the daily charts.

For almost three weeks, the stock has been consolidating in the range of Rs 520 to Rs 495 levels and formed a rectangle pattern on daily charts.

This week, the breakout above the rectangle pattern has been witnessed which suggests the continuation of its uptrend.

The rising volumes with breakout and positive divergences on secondary oscillators also point towards the next upswing in the prices.

Maharashtra Seamless | LTP: Rs 275.45 | Target price: Rs 303 | Stop loss: Rs 250 | Upside: Rs 10%

Last week, the stock managed to give breakout above its 200-day exponential moving average on the daily charts which is placed at Rs 251 levels.

At the current juncture, a fresh breakout above the key resistance of Rs 260 has been witnessed with marginally higher volumes.

The stock has given breakout after forming a rounding bottom pattern on daily charts which suggests further upside in the prices.

(The author is Senior Technical Analyst at SMC Global Securities)

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Shitij Gandhi
first published: Dec 2, 2020 07:43 am

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