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Hot Stocks | Here's why you should bet on Lemon Tree Hotels, Cipla for short term

For the week, 17,500–17,650 remains a sturdy wall and until it is surpassed convincingly, tentativeness at higher levels will persist

August 08, 2022 / 06:10 AM IST
  • bselive
  • nselive
Todays L/H

The week gone by was not an easy one for the market. Barring the strong upmove on August 1, we witnessed nervousness at higher levels throughout the week.

On the weekly expiry session, massive profit booking from the morning highs of 17,490 was seen. In a blink of the eye, the NIfty not only slipped below 17,300 but also went on to test the sub-17,200 terrain. The heavy selloff was a good reality check and a warning not to be complacent.

The undertone, however, was bullish and hence, all the intraday declines were successfully absorbed.

For the current week, 17,500–17,650 remains a sturdy wall and until it is surpassed convincingly, tentativeness at higher levels will persist.

On the flip side, 17,300 followed by 17,150 has become sacrosanct supports. We expect some consolidation to continue in this current week as well.


Traders are advised not to carry aggressive bets overnight for a while and ideally, the strategy would be to follow one step at a time and respect levels on either side.

At the start of the previous week, stock-specific movements were a bit vibrant but cooled off a bit towards the end.

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

Lemon Tree Hotels: Buy | LTP: Rs 72.85 | Stop-Loss: Rs 68.40 | Target: Rs 81 | Return: 11 percent

The stock has witnessed a volume-based breakout in the last trading session and moved to a new 52-week high zone. The cycle of higher high – higher lows is thoroughly maintained in the counter and is also placed above all its significant exponential moving averages on the daily chart, which adds to the bullish quotient.

From the risk-reward point of view, the stock is placed in a lucrative zone and is likely to carry the momentum in the near period.

Hence, we recommend buying for a near-term target of Rs 81. Traders can participate by following strict stop-loss at Rs 68.40.


Cipla: Buy | LTP: Rs 1,034.20 | Stop-Loss: Rs 984 | Target: Rs 1,095 | Return: 6 percent

The pharma space has been showing some mixed moves but in the week gone by, some of the individual movers did extremely well and Cipla is one of the rank outperformers.

The stock price broke out from its multi-week congestion phase to zoom nearly 6 percent on a weekly basis to reclaim the four-digit mark with some authority.

The surge in volumes indicates the overall buying interest in the counter, which is a sign of a healthy move.

Traders are advised to buy on a decline at around Rs 1,025–1,015 for a near- term target of Rs 1,095. A strict stop-loss needs to be placed at Rs 984.


Disclaimer: The views and investment tips expressed by experts on are their own and not those of the website or its management. advises users to check with certified experts before taking any investment decisions.
Sameet Chavan is the Chief Analyst-Technical and Derivatives at Angel One Ltd.
first published: Aug 8, 2022 06:10 am
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