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Hot Stocks | Here is why you should bet on Adani Ports, Glaxo Pharma, Nalco for short term

The lower high lower and low formation will be neglected only above 17,600 levels till then, this can be considered as a short-term pullback

December 09, 2021 / 07:15 AM IST
 
 
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The benchmark indices on December 8 saw a strong gap-up opening following its global peers and closed one and a half percent higher without filling its opening gap.

Two back-to-back strong closing above one percent indicates a sharp short covering in the market where prices have found resistance near their 21 and 50-day exponential moving averages.

The lower high and lower low formation will be neglected only above 17,600 till then this can be considered as a short-term pullback. The overall option data suggests prices likely to trade in between the range of 17,000– 17,600.

On the weekly chart, prices found support near its 21-week exponential moving average which is acting as an anchor point for the index.

Momentum oscillator RSI (14) and Stochastic have suggested positive crossover on the daily chart. The Nifty has reached a good hurdle zone of 17,600. If it manages to sustain above it, then 18,000 will be the next level for the index. The immediate support is coming near 17,100 and 16,900.

Close

Here are 3 buy calls for next two-three weeks:

Adani Ports: Buy | LTP: Rs 761.40 | Stop-Loss: Rs 730 | Target: Rs 810 | Return: 6.4 percent

Prices were trading in an ascending triangle formation for the past two months and formed a trend line resistance at Rs 740.

Adani Ports broke out of the formation at Rs 750 on December 8 and the price registered a decisive breakout that suggests a change in the trend from sideways to upside. Stock is trading above its 21, 50 & 100-day exponential moving averages on the daily time frame, which is positive in the near term.

The moving average convergence divergence (MACD) indicator is reading above its centerline with a positive crossover above its signal line. Momentum oscillator RSI (14) is reading near 60 levels, which indicates positive momentum will like to continue ahead.

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Glaxosmithkline Pharmaceuticals: Buy | LTP: Rs 1,841.40 | Stop-Loss: Rs 1,748 | Target: Rs 2,000 | Return: 8.60 percent

The prices were trading in a rectangle formation for the past one year and formed a trend line resistance at Rs 1,750 levels.

Glaxo broke out of a channel pattern at Rs 1,825 on December 6 and the prices registered a decisive breakout that suggests a change in the trend from sideways to upside. From the last two trading sessions, prices have given a throwback near its trend line support, which is placed near Rs 1,760.

The stock is trading above its 21, 50 & 100-day exponential moving averages on the daily time frame, which is positive for the prices in the near term.

The MACD indicator is reading above its centerline with a positive crossover above its signal line. Momentum oscillator RSI (14) is reading above 65 levels, which indicates that positive momentum will likely continue ahead.

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National Aluminium Company: Buy | LTP: Rs 98.30 | Stop-Loss: Rs 93 | Target: Rs 107.20 | Return: 9.1 percent

The stock was trading in a lower low, lower high formation for the last two months and formed a falling wedge on the daily time frame.

On December 8, the stock gave a breakout of a falling wedge pattern and closed above its 21 and 50–day exponential moving averages.

Momentum oscillator RSI (14) has given a falling trend line breakout above 50 levels with bullish crossover on the cards. The higher high, higher low pattern is well intact on the broader time frame, indicating a bottom-out structure on the lower time frames.

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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.
RohanPatil Rohan Patil is the Technical Analyst at Bonanza Portfolio Ltd.
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