Amid all the hustles, the Nifty concluded last week with a cut of nearly 0.6 percent and settled a tad above the 18,200 level. Technically, the recent correction was certainly expected after the decent run and the overall chart structure remains robust, with bulls firmly able to withhold the pivotal support.
Even on the hourly chart, the formation of the ‘Wolfe Wave’ pattern with the positive divergence in the RSI-smoothened contributes to the positive development for the index, and we may expect the runup to continue in the coming period.
On the technical levels, the 18,050-18,000 was firmly safeguarded, showcasing the importance of pivotal support and is expected to act as a sheet anchor in the comparable period. On the higher end, 18,400-18,450 is likely to act as the sturdy wall and a decisive breach would only trigger fresh longs in the system in the future.
Going forward, we remain sanguine with a robust approach post the price-wise correction in the index. Also, the banking index is nearing the lifetime high zone, and any breach could contribute to the upliftment of the market sentiments.
Here are two buy calls for short term:
NIIT: Buy | LTP: Rs 386.25 | Stop-Loss: Rs 368 | Target: Rs 408 | Return: 6 percent
NIIT has seen strong buying traction in the last trading session on Friday, which was backed by robust volumes and has witnessed a breakout on a closing basis, signifying positive development in the counter.
On a technical aspect, the stock has seen a channel 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 NIIT with a stop-loss of Rs 368 and for a target of Rs 408.
KEI Industries: Buy | LTP: Rs 2,025 | Stop-Loss: Rs 1,910 | Target: Rs 2,190 | Return: 8 percent
KEI witnessed a strong move in the last session and has rebounded from the 21 DEMA (exponential moving average). The stock has recently seen some buying traction and hovered well above all its major EMAs 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 KEI within a range of Rs 2,010-2,020, with a stop-loss of Rs 1,910 and for a target of Rs 2,190.
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