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Last Updated : Oct 15, 2020 07:27 AM IST | Source: Moneycontrol.com

Hot Stocks | Can bet on UltraTech Cement, HDFC for short term

Maximum Call OI of 23.35 lakh contracts was seen at 12,500 strikes which will act as crucial resistance in the October series.

 
 
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Nifty on October 14 traded in a narrow range throughout the day but a sudden spike in the last hour of the session stretched Nifty to close above 11,950 and formed a bullish candlestick with a long trailing tail on the daily interval.

The bullish Harami pattern formed in the previous week is still valid and the index is trading well below the said pattern.

Maximum Call OI of 23.35 lakh contracts was seen at 12,500 strikes which will act as crucial resistance in the October series.

Close

Maximum Put OI of 24.08 lakh contracts was seen at 11,500 strikes which will act as crucial support in the October series.

Bank Nifty recovered more than 600 points from the day’s low and has engulfed its previous day's red candle on a daily timeframe.

Bank Nifty, on the daily chart, is trading above its 21, 50 & 100 EMA. On the weekly chart, the index still floats below its said averages.

This indicates one needs to cross the 25,000-mark on the broader timeframe to change the trend from sideways to bullish.

The short-lived correction is probably over and the benchmark index is ready for its next leg of impulse wave which will stretch Nifty to trade above the 12,000-mark.

In the case of any decline, the index will continue to find support around 11,800 - 11,750 levels, which coincides with runaway gap supports.

However, a stable move above 12,000 levels will invalidate resistance and it will strengthen the index till 12,250 levels in the coming weeks.

Here are two buy calls for the short-term:

UltraTech Cement | LTP: Rs 4,459 | Target price: Rs 4,880 | Stop loss: Rs 4,200 | Upside: 9%

On October 8, the stock prices finally managed to surpass the multiple resistance zones around Rs 4,200 –4,250 which eventually confirmed an ascending triangle pattern breakout on the daily interval.

Since the breakout, the stock has been consolidating above its trendline support and is likely to complete its throwback.

The recent leg of strong up-move is also supported by strong volumes and it also resembles a strong consolidation breakout.

Prices are above the 50 and 100-day exponential moving averages on the weekly chart.

Momentum oscillator RSI (14) is reading near 60 levels with positive crossover, which is positive for the counter.

The MACD indicator is reading above its line of polarity with positive sentiments.

HDFC | LTP: Rs 1,978.10 | Target price: Rs 2,120 | Stop loss: Rs 1,900 | Upside: 7%

On the daily chart, HDFC has given a breakout of the consolidation pattern and sustained above all its major exponential moving averages.

The stock had been in the consolidation mode for the last couple of months and a recent breakout has pushed the price above its horizontal trendline resistance on a daily scale.

A bullish candle formed on the weekly candle has closed above its previous several weeks high.

The majority of indicators and oscillators are showing a positive trend for the current scenario.

(The author is a technical analyst at Bonanza Portfolio)

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 15, 2020 07:27 am
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