Indications are in the favour of further consolidation and we expect the Nifty50 to hover within the 11,700-12,100 range in the coming week.
The markets ended almost unchanged amid volatility in continuation of the prevailing consolidation phase that we are seeing in the market.
The mixed trend was witnessed on the sectoral front as well wherein banking helped the benchmark index hold at higher levels while others traded mixed.
Indications are in the favour of further consolidation, and we expect the Nifty50 to hover within 11,700-12,100 range in the coming week.
Having said that, we feel it is a healthy pause after the recent surge and the overall trend would remain positive. Besides, the buoyancy in the banking index is pointing towards a strong possibility of the Nifty50 testing a new high in weeks to come.
Here is a list of top three stocks which we think are good buy options at current levels for a holding period of one-three weeks:
Tata Chemicals Limited: Buy | LTP: Rs 639 | Target: Rs 670 | Stop Loss: Rs 624 | Upside 5 percent | Initiation range: Rs 635-640
Tata Chemicals has been gradually inching higher for the last two months, after forming a strong base at 200-EMA on the weekly chart.
It has witnessed a marginal dip of late and tested the support zone around Rs 620 levels which has resulted in the formation of a fresh buying pivot. We advise initiating fresh longs as per the mentioned zone.
HDFC Ltd: Buy | CMP: Rs 2,224 | Target: Rs 2,280 | Stop Loss: Rs 2,180 | Upside 2 percent | Initiation range: Rs 2,210-2,215
After a rally from Rs 1,950 to Rs 2,264 levels, HDFC Ltd has retraced marginally of late and tested the immediate support zone around Rs 2,200 levels.
Considering its overall trend and buoyancy in the banking and financials space, we advise using this dip to create fresh longs in the given range.
Power Finance Corporation Ltd: Buy | LTP: Rs 111.20 | Target: Rs 118 | Stop Loss: Rs 107 | Upside 6 percent | Initiation range: Rs 110-112
PFC has been consolidating in a narrow range of Rs 108-114 for the last two weeks while holding strongly above the support zone of moving averages ribbon i.e. (50/100/200 EMA) on the daily chart.
Indications are now in the favour of the fresh up move in the near future. Trades can initiate fresh longs as per the given levels.
(The author is Vice President, Religare Broking)Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.