The Nifty50 concluded the truncated week a tad above 19,300 points by shedding nearly a percent from the previous weekly close. Although the correction has not been severe, the Nifty has marked negative close in the last four weeks.
Key indices are stuck in a range and till we do not find any major trigger, the consolidation is likely to continue. If we take a meticulous glance at the hourly chart, we can see ‘three-point positive divergence’ in the RSI-Smoothened oscillator. This development did trigger some smart recovery around the mid-session; but due to lack of follow up, we saw few downticks towards the end.
The structure is still intact and, hence, we will not be surprised to see some buying emerging at lower levels (provided there is no major global aberration). The first sign of revival would be confirmed once the Nifty sustains above the 19,370 – 19,400 levels, which may then push it towards the next cluster of 19,550 – 19,650.
On the flipside, 19,250 is to be seen as a critical support; because a drift below this would result in a sharp correction towards the major support zone of 19,100 – 19,000 (which seems unlikely at this moment).
Traders should refrain from complacent trades and continue with one-step-at-a-time approach.
Here are two buy calls for short term:
Lemon Tree Hotels: Buy | LTP: Rs 102.15 | Stop-Loss: Rs 96.8 | Target: Rs 112 | Return: 10 percent
This stock witnessed a massive spurt in price-volume in the last trading session, and with this, it cocked the highest-ever closure on the weekly charts. Also, with the placement above all its EMAs (exponential moving average) on the daily time frame, the counter looks poised to continue its upward march in uncharted territory.
The technical parameters are in sync with the ongoing momentum, suggesting the bullish bias to continue in the near period. We recommend buying for a trading target of Rs 112. The stop-loss can be placed at Rs 96.80.
KPR Mill: Buy | LTP: Rs 684.95 | Stop-Loss: Rs 656 | Target: Rs 736 | Return: 7.5 percent
This stock has been a steady mover since the beginning of the current calendar year. We can see series of ‘higher highs higher lows’ in the daily time frame chart. Recently prices have been undergoing a long time-wise corrective phase.
On Friday, we finally witnessed a decisive breakout above a recent hurdle. With this, the stock is now placed at its highest levels since April 2022.
As far as volume activity is concerned, we can clearly observe the generous amount of participation to support the breakout. Traders can look to buy for a short-term target of Rs 736. The strict stop-loss can be placed at Rs 656.
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