Manish Hathiramani
The week ahead promises to be an interesting one. We have crossed a couple of short-term resistance points of 9,150 and 9,250.
What needs to be seen is if we can cross the medium-term resistance of 9,350. This would mean a lot for the markets.
To put this into perspective, we could see levels of 9,650 almost instantaneously. What would then be required is to keep above 9,650 for a few days, as that would lay the foundation of a new upside rally which could take this market above 10,000.
On the flip side, the support of this market lies at 9,000. A closing below this could indicate a slip from the existing positive trend which we have entered since Thursday. The medium-term support is below 8,800 which was the low made on April 15.
The Bank Nifty is very well placed as it has crossed its medium-term resistance of 20,200. We could expect 21,200 as the first target of this move. If we sustain above that level, the next price point would be 23,200. The support for the index is 19,300.
My stock picks for next week would be Cipla, Axis Bank and Hindalco in the front-line segment, and Bharat Forge and Oberoi Realty in the midcap segment.
Cipla: Rs 610 was a potential target for this stock which was achieved in the week gone by. To continue its uptrend, it needs to trade above Rs 615. If this can be managed, the stock would move towards Rs 700.
Axis Bank: This was my pick for the last week too. We have managed to cross the level of Rs 430. We should now be headed towards Rs 520.
Hindalco Industries: Rs 115 was a level to watch out for. We have flown out of that on the back of good volumes. We should target a level of Rs 140.
Bharat Forge: This stock has crossed its resistance of Rs 270 on very high volumes and thereafter has moved up steadily. With a stop around Rs 230, it could be traded for a target of Rs 320.
Oberoi Realty: This is another example of a midcap stock which convincingly surpassed its resistance level of Rs 395 during trading hours on Friday. With a stop loss at Rs 300, this could be traded for a target of Rs 450.
(The author is Proprietary Index Trader & Technical Analyst at Deen Dayal Investments.)
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.
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