The benchmark index Nifty added more than a percent last week and, in the process, it ended the week at its peak in this calendar year so far.
We are not surprised with this move as we have been quite vocal on how strong our markets are and, soon we would see Bank Nifty scaling past the 42,000 mark. The banking index has finally achieved this milestone and soon we would see the Nifty following these footsteps.
Technically speaking, the price configuration looks promising, because the Nifty finally managed to surpass the time-tested trendline resistance above 18,200–18,000 with some authority.
For the coming week, 18,200–18,000 would now be seen as a sacrosanct support zone, whereas on the flipside, testing 18,450 and 18,600 is clearly on cards. In fact, if the momentum persists, we will see the Nifty clocking a fresh record high in the coming week itself.
Till now, most other heavyweights have been driving the markets higher but with the IT space coming out of its long slumber, the rally is likely to be robust in nature.
The broader end of the spectrum has been quiet all this while, but the way the Nifty Midcap50 index is placed, we will not be surprised to see it breaking its shackles quite soon.
Hence, traders should brace themselves for a good stock-specific treat in the near future.
Here are two buy calls for th next 2-3 weeks:
Mindtree: Buy | LTP: Rs 3,664 | Stop-Loss: Rs 3,488 | Target: Rs 3,970 | Return: 8 percent
The tide finally seems to have turned for the IT space after a long period on underperformance. On Friday, Mindtree witnessed a strong breakout from its previous swing high and if we take a glance at the volume activity, we can see more than thrice of its recent average daily volumes.
This certainly provides credence to the move. The mid-sized IT counters are a bit high beta in nature and hence, we saw a flamboyant price action to close convincingly above the 200-day SMA (simple moving average).
Considering the weekly time frame chart, we recommend buying for a near term target of Rs 3,970. Traders can participate by following strict stop-loss at Rs 3,488.
Hero MotoCorp: Buy | LTP: Rs 2,668.50 | Stop-Loss: Rs 2,600 | Target: Rs 2,790 | Return: 4.5 percent
This giant two-wheeler stock has been muted since last eighteen months now and although the picture has not completely changed as of now, we can see some early signs of revival.
Recently, stock prices stalled around its key support zone of Rs 2,500 which was then followed by a modest recovery to surpass the hurdle of Rs 2,650 – 2,700.
Considering the daily time frame chart, Friday's decline should ideally be construed as a pull back.
Hence, traders are advised to buy for a near term target of Rs 2,790. The strict stop-loss needs to be placed at Rs 2,600.
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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