The Nifty50 index concluded the first week (of the new financial year) in the positive terrain, procuring around 0.84 percent to settle a tad above the 22,500 zone, remarking a highest-ever weekly closure.
It had been an eventful week, both on the global and domestic fronts, and the in-line expectation of the status quo by the weekend from the MPC ignited some fire in the banking space. Overall, both the key indices complement their remarkable moves in the week with solid participation from the broader markets, suggesting a robust undertone. From here, if we do not see any aberrations from global peers, rather there could be a strong leg of rally in the upcoming week.
From a technical standpoint, as the Nifty index has headed into an uncharted territory, it becomes difficult to surface the intermediate resistance, but looking at the recent developments, another leg of 200-300 point (22,700-22,800) rally could be seen on the cards under favourable scenarios.
On the lower end, strong support is seen around 22,350-22,300, which certainly has proved its mettle in the previous week, followed by the sacrosanct support at 22,200.
Going ahead, global developments over the weekend might set the immediate tone, and hence, a close tab is required to keep on the global bourses. Also, looking at the bullish bias, the domestic market looks prominent to continue its upward trajectory until any aberrations occur on any front. We would advocate traders to refrain from complacency and maintain a pragmatic approach with a stock-centric view for outperformance.
Here are two buy calls for short term:
Bajaj Finserv: Buy | LTP: Rs 1,677.95 | Stop-Loss: Rs 1,608 | Target: Rs 1,740-1,750 | Return: 4 percent
Bajaj Finserv has strongly recouped from the 200 SMA (simple moving average) in the last couple of trading weeks and has decisively surpassed the crucial hurdle of Rs 1,645-1,655.
On the daily chart, the counter seems to witness a ‘flag’ pattern breakout, suggesting a buoyant potential upside in the coming period. On the oscillator front, the significant technical indicators are very much in line with the bullish development, adding a strong undertone to the counter.
Hence, we recommend buying Bajaj Finserv around Rs 1,660-1,650, with a stop-loss at Rs 1,608 and target of Rs 1,740-1,750.
NCC: Buy | LTP: Rs 272.70 | Stop-Loss: Rs 250 | Target: Rs 290 | Return: 6 percent
NCC witnessed a decisive spurt in price volume in the last trading session, soaring to record highs. The counter is also in a secular uptrend, hovering in a cycle of higher highs and lower lows on all time frames, adding a bullish undertone.
From a technical standpoint, the 14-period RSI (relative strength index) and MACD (moving average convergence divergence) both signal a positive crossover, suggesting the counter looks poised to continue its northward journey in a comparable period.
Hence, we recommend buying NCC around Rs 268-260, with a stop-loss of Rs 250 and target of Rs 290.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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