Nifty continued its northward journey for the sixth consecutive day as it rose 192 points to close at yet another new high of 15,116 on February 8.
During the last six trading sessions, Nifty gained more than 1,500 points. This indicates that the bulls have dominated the bears and now the intermediate uptrend has resumed again.
In the last week, Nifty closed above its 5- and 20-day EMA which is placed at 14,700 and 14,430, respectively.
In the options segment, we have seen Put writing at 14,700-14,800 levels. This level also coincides with the previous all-time high level which will interchange its role as a support going forward.
Therefore, we believe that the short-term trend will remain intact till Nifty is trading above 14,700 levels.
Nifty has shown a sharp recovery of more than 100 percent from 7,511(March 2020 bottom) to 15,160 (February 8, 2021 high).
Immediate target for Nifty is seen at 15,470, which happens to be 161.8 percent retracement of the entire fall seen from January 2020 to March 2020.
While we remain open to further upsides, a short-term trend reversal would only be confirmed once the support level of 14,700 is broken.
Last week, Nifty Midcap and Smallcap indices broke out on the daily chart. Even after a sharp rise in the market during the last few days, the number of 52-week highs from NSE500 are still lower than the year 2017, 2014 and 2007.
This indicates that Midcaps and Smallcaps could continue to do well.
We believe that the intermediate trend of Nifty continues to be positive. Trading longs in the Nifty should be held on with the trailing stop loss of 14,700 levels.
We expect mid-caps to outperform the benchmark indices in the coming days.
Here are three buy recommendations for the next 3-4 weeks:
Laurus Labs | LTP: Rs 358.10 | Target price: Rs 395 | Stop loss: Rs 340 | Upside: 10%
This stock has broken out on the daily chart and has closed at the highest level since January 28, 2021.
In the last few days, the stock witnessed sideway corrections in the overall uptrend which we believe is a good buying opportunity.
The short-term trend of the stock turned bullish where the stock price closed above its 5- and 20-day EMA.
Oscillators like RSI and MFI have turned bullish on the daily chart.
Indian Hotels Company | LTP: Rs 122.95 | Target price: Rs 133 | Stop loss: Rs 117 | Upside: 8%
After forming a double-bottom around Rs 118.8, the stock reversed northwards to close above its 5 and 20-day EMA with higher volumes.
The primary trend of the stock is bullish where it is trading above its 100 and 200-day EMA.
While the price is yet to give a breakout, oscillators like RSI and MFI has broken out from the downward slopping trendline, indicating strength in the stock.
Maithan Alloys | LTP: Rs 647.10 | Target price: Rs 715 | Stop loss: Rs 605 | Upside: 10%
This stock has broken out from the downward slopping trendline on the daily chart with higher volumes.
The short and medium-term trend of the stock is bullish as the stock is trading above its all-important short and long-term moving averages.
The stock price is forming bullish higher top higher bottom formation on the weekly chart.
Oscillators and momentum indicators are indicating strength in the stocks.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.