Exclusive Webinar :Gain complete knowledge about how you can invest in global markets during an insightful webinar on April 16 at 11 am. Register Now!

Hot Stocks | Why Tata Power, Rain Industries and HDFC Bank are bets for short term

The key support levels to watch out for in the short-term are 14,635 (weekly low), followed by 14,297 (61.8 percent retracement level of the rise from 13,596-15,431).

February 26, 2021 / 07:16 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Nifty ended with a gain of 0.77 percent at 15,097.35 on February 25.

On the daily timeframe, we can see that the index has formed a bottom near 14,600. This is close to the 14,730-mark which is a 38.2 percent retracement level of the rise from 13,596-15,431.

On the indicator front, the index remains above the long-term moving averages of 50-day, 100-day and 200 -day SMA.

The RSI plotted on the medium and the short-term charts can be seen rising, indicating that the medium and short-term trend of the index remains bullish.

Close

On the upside, the key resistance levels are 15,276 (Feb 9, 2021 high). If the index sustains above this level, we might see it head higher towards the lifetime high of 15,431 and eventually 15,838 (138.2 percent extension level of the rise from 13,131-14,753, projected from 13,596).

The key support levels to watch out for in the short-term are 14,635 (weekly low), followed by 14,297 (61.8 percent retracement level of the rise from 13,596-15,431).

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

Tata Power | LTP: Rs 96.10 | Target price: Rs 133 | Stop loss: Rs 75 | Upside: 38%

This stock, on the monthly timeframe, can be seen forming a higher high higher low pattern since May 2020.

This up move took the prices from Rs 27 to Rs 94.

On the weekly timeframe, the stock has started moving after bouncing off the Rs 74.50 mark. The up-moves are backed by increasing volume, indicating participation in the stock as it moves higher.

RSI plotted on the medium and the short-term charts can be seen moving higher, indicating a build-up of strong momentum.

The immediate resistance is placed at Rs 101-103 (Jan 1, 2018, high and also the 78.6 percent extension level of the rise from Rs 52 to Rs 88, projected from Rs 74.50), followed by Rs 110 (100 percent extension level of the rise from Rs 52 to Rs 88, projected from Rs 74.50) and eventually towards 133 (161.8 percent extension level of the rise from Rs 52 to Rs 88, projected from Rs 74.50).

The key support levels are Rs 89.25 (weekly low) and Rs 74.40 (recent swing low).

One can buy the stock at the current levels and add on dips till Rs 89.25 for the target of Rs 110, followed by Rs 133.

Rain Industries | LTP: Rs 165.25 | Target price: Rs 230 | Stop loss: Rs 130 | Upside: 39%

This stock has been in a consolidation phase since November 2018.

On February 24, the stock gained bullish momentum and moved above Rs 162 mark which is the November 2018 high.

The ADX plotted on the medium and the short-term timeframe are placed above the 25 mark and moving higher, indicating strength in the bullish trend.

The resistance is placed at Rs 200-202 (September 2018 high), followed by Rs 232 (August 2018 high).

The key level to watch for on the downside is Rs 156-148 (consolidation resistance zone), followed by Rs 130.

The price action and the technical parameters mentioned above point towards the possibility of the prices breaking out of a prolonged consolidation.

One can buy the stock at the current levels and add on dips till Rs 148 for the target of Rs 202, followed by Rs 230.

HDFC Bank | LTP: Rs 1,605.40 | Target price: Rs 1,781 | Stop loss: Rs 1,550 | Upside: 11%

On the monthly charts, HDFC Bank has been forming a higher high higher low pattern since April 2020.

On the weekly charts, we can see the stock has resumed its up-move after 2 weeks of correction.

MACD plotted on multiple timeframes can be seen placed above zero and is moving higher, indicating the presence of bullishness in the trend.

The immediate resistance is placed at Rs 1,640 (recent swing high) will act as a make-or-break level.

If the prices manage to sustain above this level, we might see them move higher towards Rs 1,687 (78.6 percent extension level of the rise from Rs 1,022 to Rs 1,464, projected from Rs 1,340 mark), followed by Rs 1,781 (100 percent extension level of the rise from Rs 1,022 to Rs 1,464, projected from Rs 1,340 mark).

The key support levels are Rs 1,550 and Rs 1,500. One can buy the stock at the current levels with a target of Rs 1,687, followed by Rs 1,781.

(The author is a technical analyst at GEPL Capital)

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.
Karan Pai
first published: Feb 26, 2021 07:16 am

stay updated

Get Daily News on your Browser
Sections