The Nifty50 settled the last week on a subdued note, procuring 0.08 percent to reclaim the 19,650 level. Technically, the truncated-yet-eventful week kept the participants on their toes with its whipsaw moves, but as we quote, ‘all’s well that ends well’.
The improved global sentiment led to a strong rebound during the mid-week, which certainly can be seen with the formation of an island bar on the daily timeframe. However, the follow-up move is still not convincing and, hence, we would rather wait for further developments to form a clear view.
Also, the anticipated status quo from the RBI MPC neither surprised nor shocked the market. Though the recent developments have been captivating as the Nifty formed a ‘dragonfly doji’ on the weekly charts, one should not become complacent as we are not entirely out of the woods.
From a technical point of view, the 19,720-19,750 zone withholds the sturdy resistance, followed by the next cluster of around 19,800-19,850 for the current week. While on the lower end, 19,580-19,500 are expected to be as immediate supports. It would be important to defend the make-or-break level of 19,300 to avoid any kind of escalation in the current week.
Here are two buy calls for short term:
Indian Hotels Company: Buy | LTP: Rs 422.95 | Stop-Loss: Rs 405 | Target: Rs 445 | Return: 5 percent
Indian Hotels has seen a strong rebound from the neckline of the breakout zone in the recent period. Also, the counter firmly hovers above its significant EMAs (exponential moving averages) on the daily timeframe, maintaining the cycle of higher highs – higher lows formation.
The primary technical indicators align with the price movement, suggesting continuation of the northward journey for the counter in the comparable period.
Hence, we recommend buying Indian Hotels Company at around Rs 420, with a stop-loss of Rs 405, and target of Rs 445.
NBCC (India): Buy | LTP: Rs 61 | Stop-Loss: Rs 56.5 | Target: Rs 68 | Return: 11 percent
NBCC has been into consolidation near its 52-week high, signalling a base setup before the leg of the rally. Interestingly, strong volume tractions have seen in the recent period, suggesting an early sign of a breakout in the counter.
On the oscillator front, a positive crossover was seen with the last day spurt on the RSI (relative strength index), adding to a bullish quotient in the counter.
Overall, the stock looks sound and likely to carry upward momentum. Hence, we recommend buying NBCC around Rs 60-60.50, with a stop-loss of Rs 56.50 and target of Rs 68.
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.
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