Hot Stocks | Can bet on Divi's Laboratories, Cadila Healthcare, IG Petrochemicals for short term

The next higher levels to be watched are around 14,800-14,900 for Nifty. Any pullback towards 14,600-14,500 should be used as a buying opportunity.

April 07, 2021 / 09:07 AM IST
 
 
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Nifty opened with an upward gap and traded with high volatility throughout the session on April 6. However, the last hour pullback action pulled the index higher and recovered some of the earlier losses.

The index closed at 14,683.50 with a gain of 46 points (0.31 percent) while BSE Sensex gained 42 points (0.09 percent).

This signifies that 14,500-14,400 still remains an important support zone to watch out for.

Nifty has been broadly moving within 14,900-14,400, indicating sideways consolidation.

Close

For the last couple of sessions, it has been sustaining below the 20-day moving average at 14,786 and 50-day moving average at 14,789, indicating weakness as well as lack of confidence in market participants.

The next higher levels to be watched are around 14,800-14,900. Any pullback towards 14,600-14,500 should be used as a buying opportunity.

The daily RSI has turned sideways and any move above the 50 mark can improve the bullish momentum.

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

Divi's Laboratories | LTP: Rs 3,686.50 | Target range: Rs 3,780-3,820 | Stop loss: Rs 3,640 | Upside: 4%

On the daily chart, the stock has given a V-shape breakout at Rs 3,580 and closed above the same, indicating an upward breakout.

This buying momentum was observed from 20-day,50-day and 100-day simple moving average support which remains a positive sign.

The daily and weekly strength indicator RSI is placed positively which shows the rising strength of the stock.

Cadila Healthcare | LTP: Rs 459.45 | Target price: Rs 480 | Stop loss: Rs 449 | Upside: 4%

With the current close, the stock has decisively broken out its four months' down-sloping trendline resistance around Rs 442, indicating a trend reversal to upward.

This breakout is accompanied by rising volumes which signals rising participation on the breakout.

The stock is well placed above its 20, 50, 100 and 200-day simple moving averages which support positive bias for the short and medium-term.

IG Petrochemicals | LTP: Rs 439.95 | Target price: Rs 480 | Stop loss: Rs 425 | Upside: 9%

For the last 8-10 weeks, the stock has been hovering around its multiple support zone at Rs 410 which is now a crucial level to watch for.

With yesterday's 5 percent gain, the stock has witnessed a good momentum along with a huge volume spurt which signals increased participation near the major support zone.

The stock has also recaptured its 100-day simple moving average at Rs 433 which is a positive sign.

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.
Rajesh Palviya is the Head - Technical & Derivatives Research at Axis Securities.
first published: Apr 7, 2021 07:48 am

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