The benchmark Nifty50 at last reclaimed its psychological 18,000 mark for the first time since December 2022 and delivered 2.5 percent gains for the week ended April 28. The weekly gains were highest since July 2022, as the buying was seen across sectors with leaders being realty, technology and infra.
The consistent uptrend in all five days of last week after forming a bottom around 17,550 in the previous week raised confidence among market participants, with the Nifty50 forming a long bullish candlestick pattern on the weekly scale with a higher-high formation. Even momentum indicators showed a bullish bias on daily as well as weekly scales.
The Nifty is expected to move towards the next hurdles at 18,200-18,500 in the coming sessions, where we can see some possibility of profit-taking, whereas the immediate supports are placed at 17,900-17,800 and the critical support may be 17,500, experts said.
"Things seem to be improving on the global fronts as well, which certainly bodes well for the bulls. As far as Nifty is concerned, it has certainly cemented its position at ‘200-SMA’ placed around 17,600 - 17,550. Before this, 17,900 - 17,700 should now be treated as immediate supports," Sameet Chavan, Head Research - Technical and Derivatives at Angel One said.
On the flipside, Sameet expects the Nifty to continue this northward trajectory to enter the next important cluster of 18,200 – 18,500 very soon.
Rohan Patil, Technical Analyst at SAMCO Securities, feels the major hurdle for bulls will be faced near 18,200 levels. If the index breaks above the said levels, then we will be witnessing a continuation of higher high formation.
Hence, Sameet Chavan advised traders to remain upbeat and should use declines (if any) to add bullish bets in the coming week.
Sectorally, banking and auto counters were the initial contributors; but now other heavyweight pockets like Capital Goods and IT (to some extent) have started participating in this journey.
"It’s also important to highlight how the broader end of the spectrum (cash segment midcaps) has found its mojo back. It’s advisable to keep focusing on such potential movers," Sameet said.
Let's take a look at the top 10 trading ideas by experts for the next three-four weeks. Returns are based on the April 28 closing prices:
Expert: Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities
Chennai Petroleum Corporation: Buy | LTP: Rs 303.75 | Stop-Loss: Rs 275 | Target: Rs 370 | Return: 22 percent
The stock is under the formation of a rounding bottom, which is suggesting a bullish consolidation and may lift the stock towards Rs 370 or Rs 400 in the medium term.
After the announcement of the quarterly numbers, the stock suddenly jumped up to Rs 318 with an excellent volume, which was registered in the month of June 2022 when the stock stood at Rs 418.
Based on the overall formation traders should be buyers at current levels and more on declines near Rs 290, with a stop-loss at Rs 275.
Power Finance Corporation: Buy | LTP: Rs 170 | Stop-Loss: Rs 155 | Target: Rs 195 | Return: 15 percent
On a monthly basis, the stock is on the verge of an upside breakout, which is at Rs 175. On the break of the same, the stock can quickly move to Rs 195. Before the breakout, the stock consolidated between Rs 170 and Rs 155 levels.
Technically, such a formation leads to a breakout in price and volume. Positional traders should be buyers at current levels and more on dips near Rs 160, with a stop-loss at Rs 155.
India Cements: Buy | LTP: Rs 185.55 | Stop-Loss: Rs 165 | Target: Rs 230 | Return: 24 percent
In September 2022, the stock started correcting to a spectacular rally from a high of Rs 299, which started from a low of Rs 145. It was about to end at Rs 200, however, it registered an extended correction which pulled the stock up to 1.618 percent of the previous move.
After hitting the same, we saw a bullish recovery up to the Rs 195 level. Currently, it is at Rs 186 and once the stock break Rs 195, we can see a trending move for the stock. Above 195, it has the scope to move towards Rs 230 with minor resistance near Rs 210. One can buy at current levels and buy more on dips to Rs 170, with a stop-loss at Rs 165.
Expert: Nandish Shah, Senior Derivative and Technical Analyst at HDFC Securities
La Opala RG: Buy | LTP: Rs 384 | Stop-Loss: Rs 358 | Targets: Rs 412-430 | Return: 12 percent
The stock price has broken out on the daily chart with higher volumes to close at highest level since January 18, 2023. It has broken out from the downward sloping trendline adjoining the highs of December 9, 2022 and April 11, 2023.
RSI (relative strength index) and MFI (money flow index) oscillator is placed above 60 and rising upwards on the daily chart, indicating strength in the current uptrend.
Plus DI (directional indicator) is trading above minus DI while ADX (average directional index) line is placed above 25, Indicating momentum in the current uptrend.
MSTC: Buy | LTP: Rs 303 | Stop-Loss: Rs 275 | Target: Rs 336-348 | Return: 15 percent
the stock price has broken out on the daily chart from the downward sloping trendline, adjoining the highs of November 30, 2022 and February 1, 2023.
Price up move is accompanied by the surge in volumes indicating strong uptrend. Primary and intermediate trend turned positive as stock price has closed above its 50, 100 and 200-day EMA.
Momentum oscillators - RSI (11) and MFI (10) is sloping upwards and placed above 60 on the daily chart, indicating strength in the stock.
Vidhi Specialty Food Ingredients: Buy | LTP: Rs 381 | Stop-Loss: Rs 350 | Target: Rs 420-440 | Return: 15 percent
The stock price has broken out on the monthly chart from the long consolidation which held for last twelve months with higher volumes. On the weekly chart, it has broken out from the downward sloping trendline, adjoining the highs of April 8, 2022 and September 16, 2022.
Stock price has formed strong base around Rs 320 levels. Momentum Indicators and Oscillators are showing strength in the stock.
Expert: Mitesh Karwa, Research Analyst at Bonanza Portfolio
PFC: Buy | LTP: Rs 170 | Stop-Loss: Rs 163.7 | Target: Rs 182 | Return: 7 percent
The Stock has given a breakout of a ‘Cup & Handle Pattern’ on a four-hourly chart. Importantly the price movement is backed by good volumes. The super trend is also indicating a bullish move on the four hourly charts which can be used as a confluence toward the bullish view.
The price is trading above conversion & baseline which is now acting as support for the stock. The momentum indicator RSI (14) has also sustained above 60 which adds more strength on the upside.
So, based on the above-mentioned technical structure, one can initiate a long position in PFC at CMP Rs 169.90, or a fall in the price till Rs 168 level can be used as a buying opportunity for the upside target of Rs 182. However, the bullish view will be negated if PFC closes below the support level of Rs 163.70.
Hindustan Petroleum Corporation: Buy | LTP: Rs 251 | Stop-Loss: Rs 239 | Target: Rs 274 | Return: 9 percent
The price has been consolidating just above the high volume zone and formed an Inverted Head & shoulder pattern indicating bullish strength. The price has formed Bullish Engulfing candlestick pattern on the weekly chart. Recently, the price has reversed from the lower Bollinger Band and shifted just below the upper band of Bollinger which adds more strength to the price.
In addition, the price is trading above the cloud which indicates bullish trend. The indicator Stochastic RSI suggested also a positive crossover confirming a long position.
Observation of the above factors indicates that a bullish move is possible in HPCL for targets up to Rs 274. One can initiate a long position near Rs 251 with a stop-loss below Rs 239 on a daily closing basis.
Dabur India: Buy | LTP: Rs 532.90 | Stop-Loss: Rs 513.9 | Target: Rs 568 | Return: 7 percent
On a weekly chart, the price has been rising continuously with Higher Highs and Higher Lows formation. Prices have respected the Rising trend tine every time it has touched.
Recently, the counter has reversed from the lower Bollinger Band with Bullish Pin bar candlesticks indicating bullish strength. At the same time, the accumulation/distribution indicator is also supportive to the next bullish rally.
Hence, based on the above technical structure one can initiate a long position in Dabur at CMP Rs 532.90 or a fall in the price till Rs 527 levels can be used as buying opportunity for the upside target of Rs 568.
However, the bullish view will be negated if Dabur closes below the support level of Rs 513.90.
Expert: Ruchit Jain, Lead Research at 5paisa.com
Apollo Hospitals Enterprises: Buy | LTP: Rs 4,514 | Stop-Loss: Rs 4,420 | Target: Rs 4,660 | Return: 3 percent
This stock went through a corrective phase from in last four months. Post some consolidation, the prices have now given a breakout from a falling trendline resistance.
On the daily chart, the stock has started forming a ‘Higher Top Higher Bottom’ structure and the RSI oscillator is indicating a positive momentum. Hence, traders can buy this stock around current market price of Rs 4,510 for potential targets of Rs 4,600 and Rs 4,660. The stop-loss for long positions should be placed below Rs 4,420.
REC: Buy | LTP: Rs 132 | Stop-Loss: Rs 125 | Target: Rs 146 | Return: 11 percent
The stock has given a breakout from its previous swing high resistance and has resumed its uptrend. The volumes on breakout in Friday’s session were high and the RSI oscillator is indicating a positive momentum.
Short term traders can look to buy the stock at current price of Rs 132 and add on dips around Rs 129 for potential targets around Rs 140 and Rs 146. The stop-loss for long positions should be placed below Rs 125.
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.
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!
