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Hot Stocks | Radico Khaitan, ACC & Siemens top bets for short term

Support for Nifty is placed at 15,050 while resistance is near 15,430 (all-time high).

May 27, 2021 / 07:32 AM IST
 
 
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Nifty on the daily chart witnessed a breakout of a downward falling channel pattern which was placed near 15,100.

Within the channel, the index had formed a rising wedge pattern, and currently, prices have halted near the upper band of the wedge pattern.

Nifty on the daily chart is trading above its 21 and 50-day exponential moving averages which are placed near the lower band of the wedge pattern acting as a crucial support zone for the index.

Momentum oscillator RSI (14) has witnessed a horizontal trendline breakout on the daily chart which is placed near 60 level, which indicates positive momentum is likely to sustain.

Close

Bank Nifty finally broke its consolidation range of last three weeks, and on the weekly chart, it has witnessed a breakout of the downward sloping trendline and managed to close above the 50 percent retracement from its previous intermediate low.

We expect Nifty to trade higher as it sits above its trendline support on the daily timeframe. Support for the index is placed at 15,050 while resistance is near 15,430 (all-time high). A break of this level will open the gate for 15,550.

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

Radico Khaitan | LTP: Rs 591 | Target price: Rs 620 | Stop loss: Rs 570 | Upside: 5%

The stock had been trading in a range of Rs 510 to Rs 580 for almost three months and formed an inverted head and shoulder pattern on the daily chart.

Radico broke out of an inverted head and shoulder pattern at Rs 599.80 level on May 20 and registered a decisive breakout that suggests a change in the trend from sideways to upside.

It is trading above its 21, 50 and 100- day exponential moving averages on the daily timeframe which is positive for the stock in the near term. Above-average volume on the day of the breakout further supports our bullish view.

Momentum oscillator RSI (14) is above 55 level with positive crossover on the daily scale which indicates the uptrend may resume soon.

ACC | LTP: Rs 1,980.90 | Target price: Rs 2,095 | Stop loss: Rs 1,915 | Upside: 6%

This stock witnessed a multi-year trendline breakout on the weekly chart and is currently trading it.

ACC has given a decisive breakout of a symmetrical triangle pattern and is currently hovering above the upper band of the symmetrical triangle pattern on the daily interval.

Prices on the weekly chart have been trading in a higher high higher bottom formation since March 20 which indicates bulls are dominating the counter.

It has also seen above-average volume for the past few days. Momentum oscillator RSI (14) has given a trendline breakout is currently at 61 levels.

Siemens | LTP: Rs 1,997 | Target price: Rs 2,100 | Stop loss: Rs 1,935 | Upside: 5%

This stock has witnessed a rectangle pattern breakout at Rs 2,003.80 on May 12. Since then, it has been consolidating above its trendline support and has completed a throwback for the said pattern on the daily interval.

The momentum oscillator RSI (14-period) is above 60 level.

The price is trading above its 21-period EMA which acts as crucial support near the horizontal trendline.

Despite the minor correction, the stock price is trading in a strong upward trajectory, forming a series of higher tops and higher bottoms on the weekly chart, which indicate bulls are still in action.

(The author is a technical analyst at Bonanza Portfolio)

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.
Rohan Patil
first published: May 27, 2021 07:31 am

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