It was a truncated week for our domestic bourses but by no means it was short of any action. A long slumber finally came to an end and there couldn’t have been a better timing for this as it happened in the monthly expiry week. The Nifty50 closed a tad below 19,200 by adding a massive 2.80 percent to the bulls’ kitty on a weekly basis.
As we alluded to in the previous commentary, the market is awaiting some trigger and it’s a matter of time, we would see Nifty clocking fresh highs and then a milestone of 19,000. It’s finally a reality now and the recent laggard financial space became the charioteer for this move. Technically speaking, we are amazed with how things fall into place so accurately sometimes.
If we take a glance at the weekly time frame chart of the Nifty, we would see the 8th zone of ‘Fibonacci Time Series’ completing last week only. Precisely, it happened and as we are stepping into the 9th zone, the market is at new highs with all heavyweights participating collectively. Price-wise, we can clearly see a configuration of ‘V’ pattern which has been broken out in the upward direction.
The theoretical target of this is much higher but with the short-to-medium-term view, we continue to remain upbeat on the market. As far as levels are concerned, we can see Nifty heading towards 19,350 – 19,500 in the forthcoming week. The directional bias remains strongly bullish till the time 18.600 is not violated. Before this, 19,000 followed by 18,800 are to be seen as key supports.
Here are two buy calls for short term:
Suprajit Engineering: Buy | LTP: Rs 408.45 | Stop-Loss: Rs 391 | Target: Rs 438 | Return: 7 percent
It has seen a strong run-up in the current financial year to soar by nearly 20 percent. Post the recent surge, the counter underwent consolidation and formed a strong base before the next leg of the rally.
Technically, the stock hovers well above all its EMAs (exponential moving average) on the daily chart, indicating inherent strength. Also, with the recent closure, which was backed by robust volumes, the stock has clocked the highest-ever closure this year, implying the trend to continue in the near period.
Based on these evidences, we recommend buying for a trading target of Rs 438, with a stop-loss at Rs 391.
Escorts Kubota: Buy | LTP: Rs 2,248.40 | Stop-Loss: Rs 2,184 | Target: Rs 2,350 | Return: 4.5 percent
This stock has been a steady performer in the recent past. We can see a series of Higher Highs, Higher Lows in the ongoing up move. On Friday, stock prices participated well along with its peers’ movement and with this, we witnessed a breakout happening from a bullish ‘Flag’ pattern on the daily chart.
Taking a glance at the volume activity, we can see twice of its average daily volumes in recent times. We recommend buying for a near-term target of Rs 2,350. The strict stop-loss needs to be placed at Rs 2,184.
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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