The markets took a breather after three weeks of sustained rally, when the benchmark index witnessed a cool-off from the higher grounds. Overall, it has been a decent week where the bulls opted to take some money off the table. However, the broader market had a splendid move that kept the momentum for the market participants. Amid profit-booking, the Nifty50 index corrected just over a percent and settled the week ended April 21 a tad above 17,600 levels.
The market movement was very much in line with the in-house expectation after the strong rally and to be considered healthy from a technical point of view. Technically speaking, amid the price-wise correction in the market, the chart structure construes optimism, and it is highly anticipated to continue the cheerful run in the upcoming week.
As far as levels are concerned, till the index firmly withholds the pivotal support of 17,500, there is no sign of caution in the market. While on the higher end, 17,700-17,800 holds stiff resistance and a decisive move beyond which could trigger the next leg of rally in the comparable period.
Going forward, we remain sanguine with the current momentum and would advocate the traders to utilize the dips to add long positions in the index.
Here are two buy calls for short term:
Mahindra Holidays & Resorts India: Buy | LTP: Rs 301 | Stop-Loss: Rs 285 | Target: Rs 326 | Return: 8.3 percent
MHRIL has seen strong buying traction in the last two trading sessions and has witnessed a breakout on a closing basis, signifying positive development in the counter.
On a technical aspect, the stock has witnessed a trendline breakout on the daily and weekly time frame, adding to the bullish quotient. The stock looks well verse to continue its upwards journey in the comparable period.
Hence, we recommend to buy MHRIL in the range of Rs 298-300, with a stop-loss of Rs 285 and target of Rs 326.
Trent: Buy | LTP: Rs 1,383.35 | Stop-Loss: Rs 1,340 | Target: Rs 1,440 | Return: 4 percent
Trent has witnessed a strong move in the last week and has surged above the consolidation zone. The stock has recently seen some buying traction and hovers well above all its major EMAs (exponential moving averages) on the daily chart, adding to a bullish quotient.
The primary technical indicators align with the trend suggesting a continuation of the movement in a comparable period. Hence, we recommend to buy Trent in the range of Rs 1,375-1,380, with a stop-loss of Rs 1,340 and for a target of Rs 1,440.
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