The week ended July 2 was probably the dullest week in the last 15 months that our markets experienced.
There are instances when key indices witness some consolidation and trade in a slender range, but mostly during such times, the action continues in individual themes and there are ample opportunities available in the market to keep traders engrossed.
Barring last Friday, stock-specific moves were missing throughout last week which was frustrating for momentum traders.
We managed to hold the crucial support of 15,650. As long as 15,650 – 15,450 are held, the bulls have no reason to worry about.
On the upside, reaching the new milestone of 16,000 has become challenging and the market seems to be waiting for some sort of trigger to reach that level.
Before this, 15,800, followed by 15,900 are immediate hurdles.
Some positive movement last Friday has raised hopes that the benchmark index may head higher towards the new millstone this week. But we reiterate, if it has to happen, the banking space needs to come out of its slumber.
Here are two buy calls for the short term:
BSE | LTP: Rs 956 | Target price: Rs 1,020 | Stop loss: Rs 914 | Upside: 7%
This counter has been an outperformer since March 2020 lows. The stock has already tripled since then and there has been no stopping for this.
Recently, we witnessed a steep rise in the stock after breaking out from the intermediate hurdle of Rs 650, which was then followed by a brief consolidation.
Due to Friday’s smart surge, we can see the confirmation of a bullish flag pattern on the daily chart along with gargantuan volumes.
Looking at the multiple timeframe charts, we expect the bull run to continue.
Jyothy Laboratories | LTP: Rs 167.55 | Target price: Rs 184 | Stop loss: Rs 159.80 | Upside: 10%
This FMCG stock has been underperforming its larger peers significantly over the past many months.
Recently, the Nifty FMCG index reached a new all-time high, whereas this stock is nowhere close to its previous high.
This stock looks promising now. Price-wise, we can see a convincing breakout from the multi-month hurdle of Rs 166.
We can see prices finally traversing the 200-EMA on the weekly chart, thereby entering a bullish territory after more than two years.
(The author is Chief Technical & Derivatives Analyst at Angel Broking)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.