Upmove is likely to continue as FIIs seem to be upbeat on the Indian economy and major inflow is expected from them in coming days
Rudra Shares & Stock Brokers
The undisputed mega victory of Modi government injected enthusiasm among bulls and markets registered all-time highs. Upmove is likely to continue as foreign institutional investors (FIIs) seem to be upbeat on the Indian economy and we could see major inflow from them in coming days.
But the question arises whether it is a prudent idea to look for buying opportunities when Sensex and Bank Nifty are trading at an all-time high. The answer is yes, there are few sectors that look interesting at current levels and we have identified the midcaps for medium-term investors.
Apart from the events, the price have their own language and we have predicted the election results on the basis of price pattern where 2019 scenario was giving a sense of 2009 replica.
Now looking at the chart structure, it seems that midcaps could be the next big thing in the Indian market. In the medium term chart, we can easily see that after 5 years of uptrend, Nifty Midcap 100 index is going through the phase of correction from January 2018. And if we consider the long term move from 7,000 to 21,000 which took place from August 2013 to January 2018, the 38.2 percent retracement level comes at 16,100 which is also a 50-month moving average. And in the recent correction, the Midcap index has taken support at the same level and formed some bullish reversal candlestick pattern.
In the current month too, prices have taken support at 50-month moving average and long lower shadow suggests that sector is ready to take off.
Further, if we take a short term view into consideration, the prices have taken support at 50 percent retracement level of February 2016 to January 2018 swing high low level. The projected target as per Fibonacci for short to medium term of Nifty Midcap 100 index is 21,879 and 23,681.
Here is the list of buying ideas among midcaps for medium term:
Exide Industries: Buy | CMP: Rs 220.15 | Target: Rs 253 | Stop Loss: Rs 200 | Return: 15 percent
The stock has shown decent correction from its all-time high till 50-month moving average and formed bullish candlestick pattern. On weekly chart, the counter has formed a double bottom with positive divergence. RSI is giving the signal of change in trend.
On daily chart, the stock has given the close above 50-day moving average. Traders can initiate a buying position at CMP and on any retracement till Rs 208 for medium-term gain.
Century Textiles: Buy | CMP: Rs 1,030.75 | Target: Rs 1,250 | Stop Loss: Rs 900 | Return: 21 percent
After correcting from a recent high, the stock has formed a base and breaking out of it. There is a bullish crossover of major moving averages on the weekly chart which suggests that counter is getting ready for a fresh move on an upside.
RSI has also started trading in a bullish zone. ADX slope on daily chart suggesting that we can expect a sustainable up move in coming days.
Tata Chemicals: Buy | CMP: Rs 628.35 | Target: Rs 688 | Stop Loss: Rs 590 | Return: 10 percent
The stock has given a fresh breakout on the daily chart after a phase of consolidation. Bullish crossover of short term and long term moving averages suggest that upmove is likely in coming days. Momentum indicators have started trading in a bullish zone.
On monthly chart, the stock has taken support at 50-day exponential moving average and RSI has formed a bullish reversal pattern. Thus, can be bought for medium term gain.Disclaimer: The views and investment tips expressed by investment expert 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.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.