Amid lacklustre moves, the Nifty50 index ended the week on a negative note, correcting 0.45 percent over the last week to settle in the 19,430 zone. The Nifty index restricted its move to 230-odd points in the eventful week, reflecting tepid trading among the counterparties.
Technically speaking, amid the ongoing consolidation in the market, the chart structure construes a time-wise correction, which is to be taken as a healthy sign in a bullish market scenario.
As far as levels are concerned, the immediate resistance can be seen in the 9,500-19,600 zone, followed by a bearish gap at 19,678-19,705 withholding a sturdy hurdle for the Nifty and calling for a decisive breakthrough to regain strength.
On the flip side, the immediate support is placed around 19,380-19,350, followed by strong demand zone of the bullish gap at 19,235-19,201 on the spot levels for the upcoming week.
Considering the current scenario, we would advocate to avoid undue risk and aggressive trades in the indices.
Here are two buy calls for short term:
KPR Mill: Buy | LTP: Rs 667.55 | Stop-Loss: Rs 628 | Target: Rs 710-718 | Return: 7.5 percent
KPR Mill has seen a decisive spurt in price-volume in the last couple of trading sessions and recouped from the 50 DEMA (exponential moving average) on the daily chart.
The recent price structure construes a positive development on technical indicators, adding to a bullish quotient in the counter. Historically, such price-volume formations have augured well for the counter, and we expect the same to continue in the near period.
Hence, we recommend buying KPR Mill on dips to Rs 660, with a stop-loss of Rs 628 and targets of Rs 710-718.
Varun Beverages: Buy | LTP: Rs 849.40 | Stop-Loss: Rs 808 | Targets: Rs 890-900 | Return: 6 percent
Varun Beverages has witnessed a ‘Symmetrical Triangle’ pattern breakout on the daily time frame with notable volumes. Also, the counter is in the cycle of higher highs – higher lows, indicating inherent strength and with recent developments, we expect robust momentum to continue in the counter.
The technical indicators are very much in line with the ongoing sentiments, adding bullish biases in the stock prices. Hence, we recommend buying Varun Beverages on tips to Rs 840, with a stop-loss of Rs 808 and targets of Rs 890-900.
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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