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Hot Stocks | 'Can bet on Cipla, BPCL for short term'

"The immediate supports for Nifty are placed around 16,600 and 16,500 while the levels to watch on the upside will be 16,800 and then 17,000," said Ruchit Jain of Angel Broking.

August 30, 2021 / 07:15 AM IST
 
 
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Despite the volatility in mid and smallcap space, Nifty has managed to hold on and has continued to register new highs.

The index continues to be in an uptrend so one should continue to trade with a positive bias and avoid taking any contra trades until any reversal is seen.

The only concern that we have been highlighting is the banking index which has been underperforming for so long.

This index is still in a consolidation phase and has not breached its important supports. Hence, there is a good probability of some buying interest emerging in this sector which would then result in further support to the benchmark.

Close

The immediate supports for Nifty are placed around 16,600 and 16,500 while the levels to watch on the upside will be 16,800 and then 17,000.

One should keep track of the global developments and also book timely profits in trading positions.

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

Cipla | LTP: Rs 922 | Target price: Rs 960 | Stop loss: Rs 902 | Upside: 4%

Some stocks from the pharmaceutical space have undergone a corrective phase in the last couple of months and this stock, too, has corrected from its recent highs.

However, the medium-term chart indicates that the trend still continues to be bullish.

The price structure has turned positive and the RSI oscillator has given a positive crossover and is indicating positive momentum.

BPCL | LTP: Rs 471.15 | Target price: Rs 496 | Stop loss: Rs 456 | Upside: 5%

This stock has been consolidating within a range of Rs 469 - Rs 440 for the last couple of months.

This entire consolidation was around its 89-day exponential moving average support and now there are signs of a breakout from this consolidation on the higher side.

The Bollinger Bands, which had narrowed recently, have started to widen and prices are riding the upper end of the band which is a positive sign.

(The author is Senior Technical and 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.
Ruchit Jain
first published: Aug 30, 2021 07:15 am
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