Rajesh Palviya
The Nifty started the week on a flat note and remained consolidated within 11,700-11,480 levels indicating lack of strength on either side. It closed at 11,627 with a loss of 0.30 percent on a weekly basis.
On the weekly chart, the index formed a small bearish candle with shadows on either side representing a short term breather before its upward rally. The index is moving in a higher top and higher bottom formation on the weekly chart indicating positive bias.
The chart pattern suggests that if the Nifty crosses and sustains above 11,700 levels it would witness buying which would lead the index towards 11,820-11,900 levels.
However, if the index breaks below 11,480 level it would witness selling which would take the index towards 11,350-11,300. The Nifty is trending above its 20, 50, 100 and 200 day SMA's which are important short term moving averages, indicating positive bias in the short term.
It continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy. For the week, we expect the Nifty to trade in the range of 11,900-11,500 with a positive bias.
The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines indicating positive bias.
Bank Nifty
Bank Nifty started the week on a flat note and witnessed extreme volatility on both sides. Bank Nifty closed at 29,516 with a gain of 396 points on a weekly basis.
On the weekly chart, the index has formed a "Doji" candlestick formation indicating indecisiveness amongst market participants regarding the direction. However, it manages to form higher High-Low compared to the previous week which remains a positive sign.
The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Bank Nifty crosses and sustains above 29,700 levels it would witness buying which would lead the index towards 30,000-30,450 levels.
However, if the index breaks below 28,920 level it would witness selling which would take the index towards 28,780-28,500 levels.
Bank Nifty is trading above 20, 50, and 100 and 200 day SMA's which are important short term moving averages indicating positive bias in the short to medium term.
Bank Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy. For the week, we expect Bank Nifty to trade in the 30,300-28,850 range with a positive bias.
The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines indicating positive bias.
Here is the list of four stocks which could return and the minimum holding period for stocks is 15-20 days.
Adani Enterprises: Buy | Buy range: Rs 175-171 | Stoploss: Rs 164 | Return: 10-14 percent
On the weekly chart, the stock price has decisively broken out from its 'down-sloping trendline breakout' on a closing basis and sustaining above the same.
The weekly strength indicator RSI and the momentum indicator Stochastic both are in positive territory which supports upside momentum to continue in the near term. The stock price is sustaining well above its 20 and 50 and 100 day SMA which supports bullish sentiments going ahead.
The above analysis indicates an upside of Rs 191-198 per share.
Balkrishna Industries: Buy | Buy range: Rs 840-825 | Stoploss: Rs 790 | Return: 10-12 percent
On the weekly chart stock price has decisively broken out from its 'consolidation breakout' levels of Rs 815-700 on a closing basis and sustaining above the same.
The weekly strength indicator RSI and the momentum indicator Stochastic both are in positive territory which supports upside momentum to continue in the near term. The stock price is sustaining well above its 20 and 50 day SMA which supports bullish sentiments ahead.
The above analysis indicates an upside of Rs 918-935 per share.
Deepak Nitrite: Buy | Buying range: RS 335-328 | Stoploss: Rs 317 | Return: 9-12 percent
On the weekly chart stock price has formed “Rounding Bottom” pattern on a closing basis and sustaining above the breakout levels. This breakout has accompanied with an increase in volumes which supports bullish sentiments ahead.
The weekly strength indicator RSI and the momentum indicator Stochastic both are in positive territory which supports upside momentum to continue in the near term. The stock price is sustaining well above its 20 and 50 and 100 day SMA which supports bullish sentiments ahead.
The above analysis indicates an upside of 361-370
Bharat Electronics: Buy | Buying range: Rs 114-110 | Stoploss: Rs 107 | Return: 9-12 percent
On the weekly chart stock price has decisively broken out from its 'multiple resistance' levels of Rs 110-113 on a closing basis and sustaining above the same. The weekly strength indicator RSI and the momentum indicator Stochastic both are in positive territory which supports upside momentum to continue in the near term.
The stock price is sustaining well above its 20 and 50 and 100 day SMA which supports bullish sentiments ahead. The above analysis indicates an upside of Rs 122-125.
The author is DGM - Research (Head Technical & Derivatives Research) at Axis Securities
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
