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Hot Stocks | Over 16% return possible from L&T Infotech, GNFC, PI Industries in short term. Here's why

On daily time frame prices after consolidation, the Bollinger band has started to expand where prices on July 18 had closed above upper Bollinger band. This tells that the volatility of L&T Infotech is rising on the upside.

July 29, 2022 / 06:24 AM IST
 
 
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The Nifty on the weekly timeframe is trading above the 8-week highs, reflecting the positive undertone in the index. Prices on the weekly time frame has crossed the prior swing high of 16,793 which negated the lower low lower high formation and indicating a change in the trend.

The RSI (relative strength index) plotted on the weekly time frame is rising and is sustaining above 50 mark which indicates positive momentum.

The trend of Nifty has changed to positive from the neutral as it has breached its crucial resistance on the upside of 16,800 level.

Going ahead, we expect the Nifty to move higher till the level of 17,400 which is the key resistance, followed by 17,780 where it has multiple touch point in the form of resistance.

Our bullish view shall be negated if we see prices closing below the level of 16,356 which is the Gap support.

Close

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

PI Industries: Buy | LTP: Rs 3,065.80 | Stop-Loss: Rs 2,849 | Target: Rs 3,670 | Return: 20 percent

By looking at the weekly charts of PI Industries, we can spot that prices have shown a bounce on the upside by taking support around the 38.2 percent Fibonacci level from the advance of Rs 960.50 (March 2020) till Rs 3,516 (September 2021).

On the daily charts, we witnessed a breakout from double bottom pattern on July 21, which is a bullish reversal pattern. Through this we can infer that prices can move in the direction of breakout.

The breakout was followed by high volumes, indicating bullish sentiment in the stock.

Price is trading above the 50 days EMA (exponential moving average) tells us that the stock has positive undertone in its prices.

RSI plotted on the daily and weekly timeframe are sustaining above 50 mark which tells that the stock prices are in the momentum.

Going ahead, we expect the prices to go higher till the level of Rs 3,500 followed by Rs 3,670 level. We recommend to place a stop-loss at Rs 2,849, strictly on the closing basis.

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Gujarat Narmada Valley Fertilizers & Chemicals: Buy | LTP: Rs 715.90 | Stop-Loss: Rs 645 | Target: Rs 900 | Return: 26 percent

On the weekly charts of GNFC, through the trend lines we can spot that the underlying trend of the stock is accelerating.

After the breakout from the rounding bottom pattern on February 2022 (Pattern took 4 years to form from January 2018)), prices have retested the neckline of the pattern as well as the accelerating trend line and showed a bounce from Rs 542 levels. This indicates the price may continue to move higher in the direction of prior up-trend.

On the daily time frame, we witnessed a positive crossover of 18 and 36 days EMA, indicating the bullish undertone of the price and the tendency for the price to trend for the upside.

RSI plotted on weekly timeframe has sustained above 50 mark, which implies that price has strong momentum.

Going ahead we expect the price to go higher till the level of Rs 900. We recommend to place a stop-loss at the level of Rs 645, strictly on the closing basis.

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L&T Infotech: Buy | LTP: Rs 4,649.10 | Stop-Loss: Rs 4,200 | Target: Rs 5,400 | Return: 16 percent

LTI on weekly charts have shown a bounce on the upside from the crucial support of Rs 3,800 – 3,400 level. We witnessed a breakout from the descending triangle pattern in the previous week, which suggest reversal in script.

The breakout was followed by strong volumes which indicates positive undertone of the stock.

On daily time frame prices after consolidation, the Bollinger band has started to expand where prices on July 18 had closed above upper Bollinger band. This tells that the volatility of the stock is rising on the upside.

In the latest trading session, we saw a Gap up with high volumes states that the prices have strong bullish sentiments.

RSI plotted on weekly time frame have started to form higher high, higher bottom pattern through which we can infer that the breakout occurred was with high volumes.

Going ahead we expect the price to rise till the level of Rs 5,400. We recommend to place a stop-loss at the level of Rs 4,200, strictly on the closing basis.

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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.
Vidnyan Sawant is the AVP Technical Research at GEPL Capital.
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