The Nifty has managed to reach the summit so far this year, reclaiming 18,500 with the participation of recent laggard, Reliance Industries and importantly, the IT space which is finally finding its mojo back after a nearly 15-month slumber.
The BFSI counters, too, participated but not to the tune of they generally do during such rallies. Nevertheless, the banking index seems to be spending some time before it surpasses the all-time high to enter an uncharted territory.
Now, as far as the Nifty is concerned, we can see breakout happening on daily time frame chart which is likely to unfold in the next leg of the rally to head towards 18,700 first and then, if the momentum persists, the new high is imminent soon.
On the flipside, 18,350, followed by 18,200, should be considered as immediate supports. Ideally, in case of any blip in the current week, we are likely to see buying emerging from the mentioned demand zone. Traders are advised to stick to optimistic stance and use intra-week dips to add bullish bets.
Here are two buy calls for next 2-3 weeks:
JM Financial: Buy | LTP: Rs 71.30 | Stop-Loss: Rs 66.20 | Target: Rs 80 | Return: 12 percent
After establishing a solid foundation around Rs 60 levels, the stock prices have experienced significant upward momentum in recent weeks. This upward movement is supported by a notable increase in trading volumes, which is a positive sign for the bulls.
Furthermore, the prices have successfully maintained a position well above the 200-SMA (simple moving average), which previously posed a substantial obstacle, suggesting a shift in market dynamics.
Additionally, the RSI (relative strength index) smoothened on the weekly chart has recently signaled a fresh buying opportunity, entering into positive territory and indicating renewed interest in purchasing this stock.
Based on the above evidences, we recommend buying for a trading target of Rs 80. The stop-loss can be placed at Rs 66.20.
Cummins India: Buy | LTP: Rs 1,735 | Stop-Loss: Rs 1,688 | Target: Rs 1,820 | Return: 5 percent
This has been a steady outperformer in the capital goods space for the last many months now. The stock has seen a series of ‘Higher Highs Higher Lows’ in all time frame charts without any major correction.
Recently, stock prices underwent a decent price wise and time wise correction phase. However, with the last two days of strong upsurge, the stock has confirmed a breakout from previous wise which also led to opening of an uncharted territory.
Looking at the higher volumes, we expect the stock to continue its output performance. We recommend buying for a near-term target of Rs 1,820. The strict stop-loss needs to be placed at Rs 1,688.
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