Sameet Chavan
The market was a bit joyful at the beginning of last week, and in-line with this, Nifty continued its march beyond 12,000 by mid-week.
However, once again, the benchmark index looked a bit tentative at higher levels and in last couple of days, this tentativeness resulted into a decline towards the 11,900 mark.
Eventually, for the third consecutive week, Nifty ended on a flat note with nominal gains of nearly two tenths of a percent to the previous weekly close.
Due to the recent price action, the weekly chart now depicts three back to back ‘Doji’ candles. This indicates some indecision at a crucial juncture, but we don’t interpret it as a sign of caution. It seems that the market is now awaiting some trigger to clock fresh record highs.
Meanwhile, the range is confined to merely 200 points on a weekly basis. Only a decisive breakout outside this range would trigger some momentum in the market.
In our sense, 11880 – 11,800 would be seen as immediate base and it’s a matter of time, we would break through this sturdy wall of 12,050 – 12,100 to enter uncharted territory.
With reference to our recent articles, although the benchmark index is trapped in a range, a lot of individual themes are doing well since last few days.
This week, stocks from infrastructure space seem to be buzzing along with pharma stocks, which appear to have come out of their slumber.
Do watch out for such potential themes that are likely to provide better trading opportunities.
Here is a list of two buy stocks for the 1-3 weeks:
Kalyani Steels: Buy | LTP: Rs 224.45 | Target: Rs 260 | Stop loss: Rs 206
Recently, the stock managed break out from its congestion zone. If we look at the overall volume activity, it has risen substantially; providing credence to the up-move.
This breakout was followed by a strong surge, and then the stock went into a consolidation mode.
On Friday, the stock's prices managed a v-shaped recovery from its lower levels and the way it’s shaped up now, we are anticipating yet another breakout to the rally.
We recommend buying this stock at current levels for a target of Rs 260 over the next 14 sessions. The stop loss should be fixed at Rs 206.
Lupin: Buy | LTP: Rs 771.90 | Target: Rs 824 |Stop loss: Rs 748
After a long stint of underperformance, the pharma space is now on the path to revival.
On the daily chart, after a recent sharp bounce from the levels of Rs 646 to the recent high of Rs 787, prices have witnessed a price wise correction.
The said, correction is forming a base of around 50 percent retracement of the above rally, and the price structure suggested a resumption of up-move very soon.
In line with this, the stock went on to confirm a ‘Bullish Cup and Handle’ pattern on the daily chart by breaking out from a crucial resistance of Rs 765. Looking at the overall set up, we would expect an extension of recent up move in this counter.
Hence, we recommend buying this stock at current levels for a target of Rs 824 over the next few days. The stop loss should be fixed at Rs 748.
(The author is chief analyst-technical & derivatives, Angel 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.
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