One week into the year 2024, the Indian markets had reached yet another record high. The domestic market ended the week (on January 12) at the historic top as there were no negative factors. Initially, we witnessed a tug of war between bulls and bears for several sessions, but eventually, the bulls were able to confirm a new breakout in the benchmark Nifty index. The index hit a lifetime high of 21,928, ending the week up 0.85 percent.
In the previous weekly edition, we said that the index could still rise towards 22,000 and this was resistance formed by the placement of the uptrend line. Thus, Nifty managed to break above the support of 21,500 and tested almost 22,000 in futures. Going forward, the rally above 22,000 could move towards 22,200-22,400 next week.
However, the long-short ratio of FII index futures was around 70 percent in the previous week, but now it is around 66 percent. Over the past 2-3 years, the market briefly peaked when this ratio reached the 70-75 percent range. This suggests that Nifty still has some upside potential, but this could be the final stage of the rally, after which we could see strong profit-taking in the market.
Traders are advised to continue to be cautious with long positions. For individual stock opportunities, especially smallcap companies, you should maintain a strict downside stoploss. On the flip-side, the market needs to break 21,500 to confirm the temporary top.
The Nifty Bank index once again underperformed the benchmark index and ended the week in the red. The low was 47,000, but it needs to surpass the lifetime high of 48,600. Therefore, only a move up or down the 48,600-47,000 range could determine further trends next week.
Here are three buy calls for short term:
KRBL: Buy | LTP: Rs 381 | Stop-Loss: Rs 359 | Target: Rs 420 | Return: 10 percent
Since the last 7-8 trading sessions, the said counter has been consolidating at 200 DEMA-day exponential moving average (refer to the chart). Recently, KRBL has given a breakout after consolidating between Rs 370 and Rs 380. Additionally, it has violated the bear-trendline (refer to the chart), which further adds bullish confirmation.
On the indicator front, daily stochastics have given a reversal from 70 levels, making it a lucrative buy. Thus, one can buy in the zone of Rs 377–382 for an upside target of Rs 420 and a stop-loss of Rs 359 on a daily close basis.
Tanla Platforms: Buy | LTP: Rs 1,187 | Stop-Loss: Rs 1,099 | Target: Rs 1,350 | Return: 14 percent
Since the last 3 weeks or so, the said counter has been consolidating in zones Rs 1,070–1,150. On January 10, 2024, it took out the said range, thus making it lucrative at current levels.
On the indicator front, the weekly MACD (moving average convergence divergence) has given a bullish cross exactly above the zero line, which is a sign of further bullishness in the counter. Thus, one can buy in the range of Rs 1,175–1,200 with an upside target of Rs 1,350 and a stop-loss of Rs 1,099 on a daily close basis.
Yes Bank: Buy | LTP: Rs 24.9 | Stop-Loss: Rs 21 | Target: Rs 31 | Return: 24.5 percent
Recently the said counter has given a clean breakout on the weekly time frame chart along with Stochastics reversing from 70 zone which is looking lucrative at current levels. Also, Yes Bank has taken out its 1 year old high of Rs 24.75 thus adding further bullish stance in the counter.
Thus investors/traders can enter longs in the zone of Rs 24-25 with an upside target of Rs 31 and stop-loss of Rs 21 on a daily closing basis.
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