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Last Updated : Oct 13, 2020 07:28 AM IST | Source: Moneycontrol.com

Hot Stocks | Can bet on PNC Infratech, Strides Pharma and Lupin for short term

The short-term trend has turned bullish as Nifty is trading above its 5 and 11-day simple moving averages that are currently placed at 11,800 and 11,620, respectively.

 
 
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Nifty continued its northward journey for the eighth straight day on the trot where it gained 17 points on October 12 to close to close at eight months high of 11,931.

During the last eight sessions, Nifty moved up by more than 700 points.

Close

During the last week, Nifty broke out from the downward sloping trendline drawn by connecting the lower highs of 11,794 and 11,618 on the daily chart which suggests that the medium-term trend has turned bullish and Nifty could continue the bullish momentum in the near-term.

In the derivatives segment also, we saw a long build-up in Nifty and Bank Nifty futures last week.

The short-term trend has turned bullish as Nifty is trading above its 5 and 11-day simple moving averages that are currently placed at 11,800 and 11,620, respectively.

In the Nifty options segment, we have seen aggressive Put writing at 11,600-11,700 levels. The previous swing high of 11,618 will interchange its role as support from resistance.

The 11-day simple moving average is placed at 11,620 levels. There are multiple pieces of evidence that suggest that on the downside Nifty is likely to find strong support in the range of 11,600-11,700 levels and unless the benchmark index closes below 11,600, the bullish trend will remain intact.

Immediate resistance is seen around 12,100 level, followed by 12,246.

Our advice is to remain long in Nifty with the trailing stop loss of 11,600 levels. On the higher side, we may see levels of 12,200-12,300.

Bank Nifty, which underperformed during the current uptrend, will outperform from here on. Private bank stocks can do well.

One can remain bullish in Bank Nifty with the stop loss of 23,000 levels. On the higher side, we are expecting Bank Nifty to reach 25,000 in the days to come.

Mid-caps have been underperforming for the last few days. They may start outperforming as we approach their results.

Here are three buy recommendations for the next 3-4 weeks:

PNC Infratech | Buy | LTP: Rs 166.90 | Target price: Rs 182 | Stop loss: Rs 158 | Upside: 9%

This stock has broken out on the daily charts with a surge in volumes to close at a one-month high.

The short-term, as well as medium-term trend, of the stock, is positive as it is trading above its all-important short-term and long-term moving averages.

The stock is forming a bullish higher tops higher bottom on the daily chart.

Oscillators and momentum indicators like RSI, MFI and MACD are showing strength in the current uptrend.

Strides Pharma | Buy | LTP: Rs 720.05 | Target price: Rs 780 | Stop loss: Rs 680 | Upside: 8%

After witnessing correction for the last few days, the stock resumed its uptrend by closing above its 5-day SMA.

In the last few days, the stock has taken support at 20-day SMA.

The medium-term trend of the stock is positive as it is trading above its all-important short and long-term moving averages.

+DI is placed above the -DI while the ADX line is placed above 20 levels, indicating momentum in the uptrend.

The stock is forming a bullish higher tops higher bottom on the daily chart.

Lupin | Buy | LTP: Rs 1,043.40 | Target price: Rs 1,125 | Stop loss: Rs 990 | Upside: 8%

The stock has broken out from the downward sloping trendline, adjoining the close of September 18 and October 8 on the daily line chart.

After taking support at 20-day SMA during the last few days, the stock price resumed its uptrend by closing above its 5-day SMA.

Oscillators and momentum indicators like RSI, MFI and MACD are showing strength in the current uptrend.

+ DI is placed above the -DI while the ADX line is placed above 20, indicating momentum in the uptrend.

(The author is a technical research analyst at HDFC 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.
First Published on Oct 13, 2020 07:28 am
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