The continued and significant recovery for the second consecutive week ended March 17 helped the market get back to its one-month high especially after rising hope for de-escalation of Ukraine-Russia war, easing of oil prices and volatility, and renewed FII interest in buying.
The Nifty50 spiked 4 percent or 657 points to close at 17,287, the highest level since February 17, during the week and showed smart recovery of more than 10 percent from seven-month low of 15,671 which, for the time being, experts feel that seem to be a bottom for the market.
Given the sharp rally there could be some consolidation in an immediate term, but as long as the index holds above the crucial 17,000 mark, the initial resistance for the Nifty50 could be 17,500, followed by the important hurdle of 17,800-18,000 mark, according to experts.
"Technically, the way 'RSI-Smoothened' was placed last week, it was clearly an indication of continuation of the upward trajectory. Now, with last Thursday's spectacular move, bulls have conquered the sturdy wall of 16,800 – 17,000, which now should act as an immediate support for the index," says Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One.
On the flipside, "17,500 followed by 17,650 are the next levels to watch out for", he says.
"The index, however, may not have the similar sort of swift move that we witnessed in last 5 – 6 trading sessions. We may see some consolidation or in between small bout of profit booking in the current week," Chavan adds.
Chavan strongly believes that the stock-specific adjustments are likely to continue and hence the pragmatic approach would be to keep focusing on thematic plays and importantly identifying the potential movers within the same is the key.
Here are the top 10 trading ideas by experts for the next 3-4 weeks. Returns are based on March 17 closing prices:
Expert: Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities
HDFC Life Insurance Company: Buy | LTP: Rs 530.15 | Stop-Loss: Rs 510 | Target: Rs 545 | Return: 3 percent
From the last couple of months, the market witnessed a price correction. In this quarter so far, it has corrected nearly 20 percent. After the medium-term correction, the stock took the support near Rs 500.
On daily charts, it has seen a double-bottom formation which is broadly positive. The stock has consistently been taking support near Rs 500 and the momentum indicators are also indicating quick pullback rally from the current levels.
Unless it is trading below Rs 510, positional traders retain an optimistic stance and look for a target Rs 545. Fresh buying can be considering now and on dips, if any between Rs 530 and Rs 520 levels with a stop-loss below Rs 510.
BPCL: Buy | LTP: Rs 364.20 | Stop-Loss: Rs 350 | Target: Rs 390 | Return: 7 percent
After short-term price correction, the stock took the support near Rs 330 and reversed sharply. After a double-bottom formation, BPCL not only cleared the short-term resistance of Rs 350, but also succeeded to close above the same which is broadly positive.
The stock is trading above 20-day SMA (simple moving average) along with positive SAR (stop and reverse) series which suggests further uptrend from current levels.
For the trend following traders, Rs 352 would be the key level to watch out, above which it will move up to Rs 390.
Expert: Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities
Coromandel International: Buy | LTP: Rs 849.45 | Stop-Loss: Rs 800 | Target: Rs 950 | Return: 12 percent
After correcting from a high of Rs 956, Coromandel found support around Rs 709 levels in December 2021. These are strong supports as the stock has found support at these same levels in April 2021.
Last week, the stock reversed its downtrend by crossing its previous swing highs of Rs 833. The breakout came on the back of healthy volumes, which augurs well for the uptrend to continue.
Technical indicators are giving positive signals as the stock is trading above the 20-day and 50-day SMA. Momentum readings like the 14-week RSI (relative strength index) too are in rising mode and not overbought, which implies potential for further upsides.
With the intermediate technical set up looking attractive, we expect the stock to move up towards its previous intermediate highs in the coming weeks. Buy between Rs 840-860 levels. Stop-loss is at Rs 800 while target is at Rs 950.
Dr Lal PathLabs: Buy | LTP: Rs 2,756.20 | Stop-Loss: Rs 2,580 | Target: Rs 3,250 | Return: 18 percent
Dr Lal PathLabs has recently bounced back from a low of Rs 2,263, which also corresponds to the previous intermediate lows of the stock tested in March 2021. This indicates that the recent low of Rs 2,263 is a strong support.
Over the last two weeks, the stock has been rising steadily and making higher tops and higher bottoms in the process. On Thursday, the stock broke out of its previous swing highs and thereby confirmed a reversal of the recent downtrend.
With the stock trading above key moving averages like the 20-day SMA, the intermediate technical setup is looking positive and momentum readings like the 14-day RSI in rising mode and not extremely overbought, this augurs well for the uptrend to continue.
We therefore recommend a buy between Rs 2,790-2,820 levels. Stop-loss is at Rs 2,580 while target is at Rs 3,250.
ICICI Lombard General Insurance: Buy | LTP: Rs 1,269.40 | Stop-Loss: Rs 1,210 | Target: Rs 1,420 | Return: 12 percent
ICICI Lombard General insurance has corrected sharply from a high of Rs 1,675 touched in September 2021. The stock has recently found support around the Rs 1,192 levels which corresponds to previous intermediate lows tested in September 2020, implying that this is a strong support.
The stock has since then been rising and has made a higher bottom. The stock has also closed above the 20-day SMA and is on the verge of breaking out of the recent high of Rs 1,285. Momentum readings like the 14-day RSI too are in rising mode and not overbought, which implies potential for further upsides.
With the technical set up looking attractive on longer time frames, we expect the stock to soon breakout of the recent high of Rs 1,285 and move up further towards the previous intermediate highs. Therefore we recommend a buy between Rs 1,260-1,280 levels. Stop-loss is at Rs 1,210 while target is at Rs 1,420.
Expert: Ruchit Jain, Lead Research at 5paisa.com
JSW Steel: Buy | LTP: Rs 685.10 | Stop-Loss: Rs 655 | Target: Rs 735 | Return: 7 percent
The metal space has recently seen a relative outperformance during the market correction and the Nifty Metal index has resumed its broader uptrend from its ‘200 DEMA (day exponential moving average).
Within this sector, JSW Steel has recovered smartly from its recent swing lows and has now given a breakout from a falling trendline resistance. The volumes on breakout are better than its average and the RSI oscillator is hinting at a positive momentum. Hence, we expect a continuation of the uptrend in the short term.
Thus, short term traders can look to buy the stock in the range of Rs 685-680 with a stop-loss placed below Rs 655 for potential target of Rs 725-735.
Reliance Industries: Buy | LTP: Rs 2,481.70 | Stop-Loss: Rs 2,380 | Target: Rs 2,600 | Return: 5 percent
Since mid-October 2021, the stock has seen a price-wise as well as time-wise correction from its highs. In last one week, the stock has given a pullback from its support and had given a breakout above its hurdle in Thursday's session.
The Channel breakout indicates a probability of a resumption of the broader uptrend and hence, we expect the stock to rally higher in the near term. The RSI oscillator is also indicating a positive momentum.
Traders can look to trade with a positive bias and buy the stock in the range of Rs 2,460-2,450 for potential target of Rs 2,600 in the near term. One should place a stop-loss below Rs 2,380 on long positions.
Expert: Astha Jain, Senior Research Analyst at Hem Securities
Trent: Buy | LTP: Rs 1,262 | Stop-Loss: Rs 1,140 | Target: Rs 1,390-1,450 | Return: 10-15 percent
After making high of Rs 1,211 in January 2022, the stock has fallen and touched the level of Rs 987 in February 2022. Since last few weeks, the stock is continuously forming higher highs & higher lows & has successfully closed above all EMA with strong base formation at Rs 970-1,000 level.
Hence, we believe that stock is poised for upside rally with medium term target of Rs 1,390-1,450.
Brigade Enterprises: Buy | LTP: Rs 529.15 | Stop-Loss: Rs 470 | Target: Rs 590-605 | Return: 11-14 percent
On daily chart, after making low of Rs 428, the stock has created a strong base at around 200 EMA & tried to move upwards.
On daily & weekly charts, the stock has successfully closed above all important 10, 20, 50, 100 & 200 EMA while has moved out of long consolidation.
Hence, we believe that stock is medium term buy opportunity with possible price targets of Rs 590-605.
Expert: Malay Thakkar, Technical Research Associate at GEPL Capital
PI Industries: Buy | LTP: Rs 2,815 | Stop-Loss: Rs 2,620 | Target: Rs 3,320 | Return: 18 percent
On long-term charts, PI Industries is moving in a rational uptrend. In the recent correction, the stock formed a double bottom at the Rs 2,350 and gave a breakout with rising volumes.
In the recent week, the stock surpassed the 20-week SMA (Rs 2,736) and is now trading at an eight-week high. The RSI on the weekly timeframe is indicating a positive reversal, suggesting that the bullish momentum will continue.
We expect prices to move towards Rs 3,110 followed by Rs 3,320 levels. A stop-loss of Rs 2,620 should be followed for this trade.
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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