Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
LIVE Now :Watch Life Goals Masterclass with Bajaj Allianz Life Insurance and learn how to make ‘Smart investments for a secure retirement’

Hot Stocks | PNC Infratech, Maithan Alloys and Emami can give up to 14% return in short term

Immediate targets for the Nifty is seen around 14,890 which is 150 percent retracement of the entire downswing from 12,430 to 7,511.

January 12, 2021 / 07:16 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Nifty continued its northward journey for the second day on the trot on January 11 wherein it gained 138 points to close at yet another new all-time high levels.

Last Friday, Nifty broke out from NR4 pattern (narrow range four bar on the daily chart) which is a bullish continuation pattern.

This indicates that the bulls have overpowered the bears as the markets could continue its upward momentum since the intermediate uptrend is intact.

With intermediate and long-term momentum readings like the 14-week and 14-month RSI in rising mode and not showing any signs of negative divergence, we expect the intermediate uptrend to continue.

Close

In the options segment, we have seen Put writing at 14,200 levels. In the last few days, Nifty found support at 8-day EMA and bounced back which is currently placed at 14,196.

This level coincides with Put writing level of 14,200. Therefore, we believe that short-term trend will remain intact till Nifty is trading above 14,200.

While we remain open to further upsides, a short-term trend reversal would be confirmed only if the Nifty closes below 14,200.

Immediate targets for the Nifty is seen around 14,890 which is 150 percent retracement of the entire downswing from 12,430 to 7,511.

In Bank Nifty, our advice is to remain bullish with the trailing stop loss of 31,500 levels.

We expect Bank Nifty to cross its all-time high level of 32,600.

The intermediate trend of the Nifty continues to be positive. One should remain bullish with the trailing stop loss of 14,200 levels.

Immediate targets for the Nifty is seen around 14,890 which is 150 percent retracement of the entire downswing from 12,430 to 7,511.

The trend of the Nifty and Bank Nifty continues to remain positive, considering ongoing result season, but the possibility of sector specific running correction should not be ruled out .

Here are three buy recommendations for the next 3-4 weeks:

PNC Infratech | LTP: Rs 192.45 | Target price: Rs 220 | Stop loss: Rs 180 | Upside: 14%

This stock broke out on the daily chart last Friday where it closed at the highest level since February 2020.

The short-term trend of the stock is bullish where the stock is trading above all important short-term moving averages.

During the last four months, the stock has been taking support at 200-day EMA. Oscillator like RSI and MFI are showing strength in the stock.

Plus DI is placed above the minus DI, indicating strength in the current uptrend. Moreover, the infra sector is looking good on the charts.

Maithan Alloys | LTP: Rs 673.95 | Target price: Rs 750 | Stop loss: Rs 630 | Upside: 11%

This stock broke out on the weekly charts last week with surge in volumes to close at the highest level since July 2018.

During the last few months, it has been taking support at its 200-day EMA.

Plus DI is trading above the minus DI while the ADX line is placed above 25, indicating momentum in the current uptrend.

After the large-cap metal stocks, we expect mid-cap metals to outperform from here on.

Emami | LTP: Rs 463.55 | Target price: Rs 510 | Stop loss: Rs 440 | Upside: 10%

This stock broke out on the daily chart with higher volumes where the stock price closed at the highest levels since October 2018.

The short and medium-term trend of the stock is bullish as the stock is trading above its all the important short and long-term moving averages.

It is forming bullish higher top higher bottom formation on the daily chart. Oscillators and momentum indicators are indicating strength in the stocks.

Volumes have been higher during the up days as compared to down days during the last few weeks, indicating accumulation in the stock.

(The author is a technical research analyst at HDFC Securities)

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.
Nandish Shah
first published: Jan 12, 2021 07:16 am

stay updated

Get Daily News on your Browser
Sections