Following a 6 percent correction from its all-time high in 2022, the index experienced a notable swing low at 18,837, closely aligned with the polarity level observed in December 2022. From this point, the index resumed its upward trajectory, consistently forming higher highs and higher lows.
After a period of steady rise, the index entered a brief consolidation phase, remaining within a range for a week. This phase concluded with a breakout at 19,850, propelling the index's upward movement. Notably, this surge was fuelled by short-covering, enabling the index to surpass the psychologically significant level of 20,000.
Approaching its all-time highs, the index's upside potential could extend to 20,200, followed by 20,400.
On the downside, key support levels are anticipated at 19,900 and 19,850. This analysis suggests a positive outlook for the index, with the potential for further gains in the near term.
Here are three buy calls for short term:
Sun Pharmaceutical Industries: Buy | LTP: Rs 1,226 | Stop-Loss: Rs 1,170 | Target: Rs 1,350 | Return: 10 percent
Sun Pharma's stock has recently surged to its all-time high, surpassing the previous peak of Rs 1,200 in April 2015.
Following a 15-week consolidation period from July to November 2023, marked by a rectangle pattern, the stock has broken out of this range, signaling the end of the consolidation phase and indicating a continuation of the prior uptrend.
During the consolidation, the stock found consistent support around the 12-week exponential moving average (EMA), which played a crucial role as a dynamic support level for the prices.
Additionally, the relative strength index (RSI) is noteworthy, quoting above the 60 mark on higher time frames. This reflects the presence of positive momentum in the stock.
Moving forward, we anticipate the prices to ascend further towards Rs 1,350 mark. It is advised to place the stop-loss at Rs 1,170, strictly based on the closing basis.
HCL Technologies: Buy | LTP: Rs 1,340.90 | Stop-Loss: Rs 1,290 | Target: Rs 1,475 | Return: 10 percent
The stock is currently experiencing a robust uptrend, reaching an all-time high. The absence of lower lows and lower highs underscores the stock's healthy trend.
After a breakout, the stock retested the neckline of a rounding pattern, signifying a continuation of the upward trajectory and the initiation of an upward trend.
On the weekly charts, prices have consistently adhered to short-term averages, affirming the prevailing uptrend. Additionally, the RSI on both weekly and daily charts is above the 60 mark, indicating the presence of positive momentum in the stock.
Looking ahead, we anticipate further upward movement in prices, targeting Rs 1,475 levels. It is recommended to set a stop-loss at Rs 1,290 based on closing values.
Hero MotoCorp: Buy | LTP: Rs 3,819 | Stop-Loss: Rs 3,630 | Target: Rs 4,284 | Return: 12 percent
The stock under consideration is currently demonstrating a robust upward trend characterized by a pattern of higher highs and higher lows. Notably, the stock is trading at its all-time highs, indicating a strong buying interest and an optimistic market sentiment.
Furthermore, key breakout points in August 2017 and February 2021 are significant milestones in the stock's trajectory. The fact that the current week's trading surpasses the high of the breakout candle provides confirmation of the continued upward momentum.
The stock is trading above its 200-week exponential moving average (EMA), a long-term trend indicator. This, coupled with supportive trading volumes, reinforces the positive trend.
In addition to the stock's individual performance, its relative strength against the Nifty, as depicted in the ratio chart, is noteworthy. The breakout from a downward-sloping trend line since August 2017 indicates that the stock is not only performing well in absolute terms but is also outpacing the broader market.
Looking ahead, we anticipate further upward movement in prices, targeting Rs 4,284 levels. It is recommended to set a stop-loss at Rs 3,630 based on closing values.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
