Amid the sell-off, the Nifty settled a tad above the 19,250 zone, with a cut of 0.23 percent for the week ended August 25.
The bears continued their dominance as the mid-week rally was decisively sold into, dragging the index towards the critical support zone. However, the positive development that could be seen from a technical point of view is the formation of an ‘inverted hammer’ on the weekly chart. And if there are no global aberrations, then we might witness a rebound in domestic markets.
On the levels front, a plunge below the bullish gap of 19,230-19,200 could disrupt the near-term view and we may re-test the 19,000 mark on the downside in the current week. While on the higher end, 19,350-19,400 is to be seen as an immediate hurdle, followed by the major resistance of 19,500 in the comparable period.
We would advocate short-term traders to stay abreast with the global developments along with the mentioned technical levels for the upcoming trading week.
Here are two buy calls for short term:
KPI Green Energy: Buy | LTP: Rs 923 | Stop-Loss: Rs 870 | Target: Rs 1,000 | Return: 8 percent
KPI Green has seen a decisive spurt in price-volume in the last trading sessions to clock new highs. The recent price structure construes a positive development on technical indicators, adding to a bullish quotient in the counter.
Also, with the consolidation breakout the stock looks well-versed to continue its northward march in the comparable period. Hence, we recommend buying the stock around Rs 910-920, with a stop-loss of Rs 870 and target of Rs 1,000.
Century Plyboards: Buy | LTP: Rs 663.3 | Stop-Loss: Rs 620 | Target: Rs 720 | Return: 8 percent
Century Plyboards has seen a substantial correction post the stellar rally in the current fiscal. At present, the stock has strongly rebounded from the 100 DEMA (days exponential moving average) and retraced over 50 percent on the Fibonacci of the recent fall.
Also, the rebound was backed by a notable increase in trading volumes, supporting the bullish bias in the counter. Technically, the stock looks sound and likely to carry upward momentum.
Hence, we recommend buy Century Plyboards around Rs 650-660, with a stop-loss of Rs 620 and targets of Rs 710-720.
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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
