By Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
The Nifty50 index maintained its positive stature and clocked new highs to settle the week (ending July 14) in uncharted territory, procuring 1.20 percent of weekly gains.
The supportive moves among the global peers and the sectoral rotation were evident throughout the week, which certainly got reflected in the price action of the benchmark index.
From a technical aspect, the bulls are being resilient to let loose their grip even in the overbought parameters which showcase their dominance. But at the same time, one should not become complacent and overrule the possibility of a breather post the steep rally.
As far as levels are concerned, 19,400-19,300 is likely to cushion any short-term blip, while the sacrosanct support lies around the bullish gap of 19,200 in the comparable period. On the flip side, as the index entered uncharted territory there is no relevant hurdle; however, the next pitstop could be seen around 19,650-19,700 on an immediate basis.
We remain sanguine with the current momentum and would advocate the traders to utilize the dips to add long positions in the index. Simultaneously, one needs to keep a close tab on the mentioned levels and continue with a buy on decline strategy for the time being.
Here are two buy calls for short term:
CESC: Buy | LTP: Rs 75.45 | Stop-Loss: Rs 73 | Target: Rs 80 | Return: 6 percent
CESC has seen some buying traction in the last couple of trading sessions, which led to a ‘flag’ formation on the daily time frame, which construes positive development in the counter.
On a technical aspect, the stock is placed above all its major moving averages on the daily chart, adding to the bullish quotient. The stock looks well verse to continue its upwards journey in the comparable period.
Hence, we recommend buying CESC in the range of Rs 75-75.50, with a stop-loss of Rs 73 and target of Rs 80.
Hero MotoCorp: Buy | LTP: Rs 3,136.30 | Stop-Loss: Rs 3,020 | Target: Rs 3,328 | Return: 6 percent
Hero MotoCorp has seen a significant move in the recent period and has witnessed a strong breakout near Rs 3,000 zone. Post recent rally, the stock underwent a modest correction, suggesting a re-entry point for the bullish formation.
The primary technical indicators align with the trend suggesting a continuation of the movement in a comparable period.
Hence, we recommend buying Hero MotoCorp in the range of Rs 3,125-3,135, with a stop-loss of Rs 3,020 and target of Rs 3,328.
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