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Hot Stocks | Here's why you should bet on Shriram Transport, Hero MotoCorp in short term

Hero MotoCorp is trading above its 21, 50 & 100 days exponential moving averages on weekly & daily time frame, which is positive for the prices in the to the mid to long term.

July 14, 2022 / 06:25 AM IST
 
 
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The Nifty50 on July 13 closed below its 50 DEMA (days exponential moving average) which was placed at 16,150 levels but prices are sustaining above its 21 DEMA which is placed at 15,950 levels and will act as an anchor point for the benchmark index. The momentum oscillator RSI (relative strength index - 14) on the daily chart has formed a double top formation near 60 levels and has currently hooked down near 50 levels.

Just like in the previous four occasions, prices retraced its gap either partially or fully and then began its lower high lower bottom trend on the daily time frame. The index has formed a small upward rising channel on the daily chart and the prices are currently trading near the lower band of the pattern which is placed at 15,950 levels.

The Nifty faced a strong resistance near 16,300 levels and witnessed profit-booking near a prior trendline resistance. In case prices break above 16,300 levels then strong momentum can be seen in the prices towards 16,500 levels. The immediate support for the Nifty is placed near 15,850 and below that 15,600 will act as a major support for the Nifty.

The Bank Nifty on the daily chart has formed a Bearish Harami candlestick pattern on July 12 and prices gave the confirmation on the immediate next day by closing below the low of the pattern. The immediate support for the Bank Nifty is placed near 34,500 and the resistance is capped near 35,600 levels.

Here are two buy calls for next 2-3 weeks:

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Shriram Transport Finance: Buy | LTP: Rs 1,269 | Stop-Loss: Rs 1,200 | Target: Rs 1,375 | Return: 8.30 percent

Shriram Transport consolidated for more than eighteen weeks within the range of Rs 1,050 – 1,200 levels and formed a basing formation and created a channel pattern. The prices witnessed a consolidation range breakout on July 1 and closed above its trendline resistance.

Momentum oscillator RSI (14) shown a sharp rebound from the 35 levels and witnessed a trendline breakout above 50 levels. The MACD (moving average convergence divergence) indicator has shown an early reversal by crossing above its signal line which is below its line of polarity.

The prices are also sustained above its 21-day exponential moving average. The counter is also trading near the upper band of the Bollinger band indicates a possible continuation of the uptrend after the recent consolidation.

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Hero MotoCorp: Buy | LTP: Rs 2,843 | Stop-Loss: Rs 2,700 | Target: Rs 3,050 | Return: 7.30 percent

Hero MotoCorp consolidated in broad range of Rs 2,500 - 2,750 levels from the past one month and has formed an Inverted Head & Shoulder with neck line resistance formed at Rs 2,780 levels on the daily time frame.

The prices formed a basing formation and a falling wedge pattern on the weekly time frame and have given a combined breakout of an Inverted Head & Shoulder and falling wedge pattern on the daily and weekly charts.

Stock is trading above its 21, 50 & 100 days exponential moving averages on weekly & daily time frame, which is positive for the prices in the to the mid to long term.

MACD indicator is reading above its centerline with positive crossover above its signal line. Momentum oscillator RSI (14) on the weekly chart has given a trend line breakout which is placed near 55 levels with positive crossover.

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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.
RohanPatil Rohan Patil is the Technical Analyst at Bonanza Portfolio Ltd.
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