On September 8, the market ended yet another great week in terms of trading with the Nifty50 scaling a seven-week high beyond 19,800 points, as most sectors, barring metals, participated in the rally. The index is likely to march towards the 20,000 milestone in the coming days, provided its holds in the 19,700-19,800 area, while crucial support at 19,600-19,500, experts said.
The Nifty50 jumped 2 percent, the highest weekly rally since June, to 19,820 points and formed a strong bullish candlestick pattern, with healthy volumes for the second straight week. Also, there was a higher-high-higher-low formation, while the index took a great support at the 19,450-19,500 zone through the last week.
"Technically, the Nifty aims for the 20,000-point milestone now and, with the ongoing momentum, it would be barely a task for the bulls to pull it off," Osho Krishan, senior analyst for technical and derivative research at Angel One, said.
As far as levels are concerned, he feels 19,700 should now act as an immediate support, followed by the sacrosanct support of 19,600-19,500 in the comparable period.
The undertone seems upbeat in the market with ‘buy on dips’ being the most suitable approach, he advised investors.
Nagaraj Shetti, technical research analyst at HDFC Securities, also expects the Nifty to hit fresh all-time highs beyond the 20,000 mark this week. The potential upside target of larger triangle upside breakout comes around the 20,100-20,200 levels for the near term, he said, keeping the immediate support at the 19,650 levels.
Let's take a look at the top 10 trading ideas from experts for the next three-four weeks. Returns are based on the September 8 closing prices.
Expert: Nagaraj Shetti, technical research analyst at HDFC Securities
Rail Vikas Nigam: Buy | LTP: Rs 162.85 | Stop-Loss: Rs 151 | Targets: Rs 178-200 | Return: 23 percent
The weekly timeframe chart of Rail Vikas Nigam indicates a sharp upside breakout in the last week. After trading in a narrow range for ffour weeks, the stock price has seen a sharp upside in the last two weeks and sharply broken above the hurdle of Rs 147 levels.
The volume has expanded during upside breakout and weekly 14-period RSI (relative strength index) has sustained above the crucial upper 60 levels. This could reflect further strengthening of upside momentum in the stock price ahead.
Buying can be initiated in RVNL at the CMP of Rs 162.85, add more on dips down to Rs 156, wait for the upside targets of Rs 178 and Rs 200 in the next 3-5 weeks. Place a stop-loss of Rs 151.
Sterlite Technologies: Buy | LTP: Rs 171.30 | Stop-Loss: Rs 158 | Targets: Rs 188-210 | Return: 22 percent
After showing a narrow-range movement over the last three months, the stock price has seen decisive upside breakout in the previous week and displayed consolidation last week. The overall chart pattern indicates a decisive upside breakout of the crucial overhead resistance like down sloping trend line at Rs 162 levels and the stock price closed higher.
The volume has expanded during upside breakout in the stock price and weekly 14-period RSI has just moved above 60 levels. The present weekly chart pattern indicates a crucial bottom formation.
One may look to buy Sterlite at CMP (Rs 171.30), add more on dips down to Rs 164 and wait for the upside targets of Rs 188 and Rs 210 in the next 3-5 weeks. Place a stop-loss of Rs 158.
Expert: Viraj Vyas, CMT - Technical & Derivatives Analyst | Institutional Equity at Ashika Stock Broking
360 ONE WAM: Buy | LTP: Rs 520.35 | Stop-Loss: Rs 495 | Target: Rs 585 | Return: 12 percent
The stock has maintained a consistent uptrend since April 2020, as clearly depicted in the weekly chart. Recently, the stock experienced a robust upward move from the lows observed in May 2023, suggesting the possibility of entering a phase of trend acceleration.
During the last week, the stock found support at a significant polarity point and formed a strong bullish candlestick pattern. This implies that the momentum is likely to persist, and the stock is expected to advance further towards Rs 570-590 range in the coming weeks.
HDFC AMC: Buy | LTP: Rs 2,535.80 | Stop-Loss: Rs 2,405 | Target: Rs 2,800 | Return: 10 percent
The stock has experienced a prolonged period of underperformance and has been entrenched in a steady downtrend since 2020. However, there is a recent development worth noting as the stock formed a Double Bottom pattern, as illustrated in the chart. The breakout from this pattern materialized in July 2023.
Currently, the stock is in a consolidation phase within a narrow range, with support holding at Rs 2,400-2,410 levels. This consolidation is expected to lead to a breakout from the range, initiating the next phase of the stock's upward momentum.
Expert: Shrikant Chouhan, head of equity research (retail) at Kotak Securities
State Bank of India: Buy | LTP: Rs 583.45 | Stop-Loss: Rs 563 | Targets: Rs 600-622 | Return: 7 percent
The stock has broken out to the upside at Rs 580. On a weekly basis, it broke the high point of the Dragonfly Doji at Rs 582, without breaking its low. This is a positive indication and may lead the stock to move higher towards levels of Rs 600 and Rs 622.
The recommended strategy is to buy between Rs 583 and Rs 573, with a stop-loss at Rs 563.
Reliance Industries: Buy | LTP: Rs 2,448.2 | Stop-Loss: Rs 2,380 | Target: Rs 2,550-2,633 | Return: 7.5 percent
It has completed the corrective pattern at Rs 2,400 levels. It was correcting the levels between Rs 2,009 and Rs 2,633. On the daily chart, it is recovering from the oversold zone.
On an immediate basis, it would find resistance at 50-day and 20-day SMA (simple moving average), which are placed at Rs 2,500 levels. Above Rs 2,500, it may find resistance at Rs 2,550 and Rs 2,633. The strategy should be to buy between Rs 2,450 and Rs 2,425, and keep a stop-loss at Rs 2,380.
Zydus Lifesciences: Buy | LTP: Rs 628.15 | Stop-Loss: Rs 610 | Targets: Rs 660-690 | Return: 10 percent
There is a strong bullish trend in the stock. However, in the last 5 weeks. It is correcting from highs, which is a part of the trending move in any stock.
Furthermore, this position provides traders with an opportunity to buy the stock on a decline or at the desired level. As the stock has taken rest at 50-day SMA, we believe this will be an opportunity to buy the stock at current levels with a stop-loss at Rs 610. There is scope to move towards Rs 660 and Rs 690.
Expert: Mitesh Karwa, research analyst at Bonanza Portfolio
Siyaram Silk Mills: Buy | LTP: Rs 596.6 | Stop-Loss: Rs 540 | Target: Rs 700 | Return: 17 percent
Siyaram Silk Mills has seen breaking out of a downwards sloping parallel channel pattern on the weekly timeframe after more almost seventeen months with a big bullish candlestick and above average volumes. In addition, the stock is trading and sustaining above all its important EMAs (exponential moving average) which can be used as a confluence towards the bullish view.
On the indicator front, the Ichimoku Cloud is also suggesting a bullish move as the price is trading above the conversion line, base line and cloud. Momentum oscillator RSI (relative strength index - 14) is at around 78 on the daily time frame indicating strength by sustaining above 50.
Observation of the above factors indicates that a bullish move in Siyaram Silk Mills is possible for target upto Rs 700. One can initiate a buy trade in between the range of Rs 590-596, with a stop-loss of Rs 540 on daily closing basis.
Tamilnadu Petroproducts: Buy | LTP: Rs 97.65 | Stop-Loss: Rs 85 | Target: Rs 115 | Return: 18 percent
Tamilnadu Petroproducts has seen giving a pattern breakout on the weekly timeframe with a bullish candlestick and above average volume after two years which indicates strength as the stock is also trading above all its important EMAs on the daily timeframe which acts as a confluence.
The supertrend indicator is also indicating a bullish continuation which supports the bullish view. Momentum oscillator RSI (14) is at around 81 on the daily time frame indicating strength by sustaining above 50. And the Ichimoku Cloud is also suggesting a bullish move as the price is trading above the conversion line, base line and cloud.
Observation of the above factors indicates that a bullish move in Tamilnadu Petroproducts is possible for target upto Rs 115. One can initiate a buy trade in between the range of Rs 95-97.3, with a stop-loss of Rs 85 on daily closing basis.
Expert: Ruchit Jain, lead research at 5paisa.com
Container Corporation of India: Buy | LTP: Rs 708.9 | Stop-Loss: Rs 675 | Targets: Rs 745-765 | Return: 8 percent
The stock has been consolidating in a range since last three months. Prices are on the verge of a breakout from this consolidation phase and the volumes have started increasing indicating buying interest in the stock. The RSI oscillator is hinting at a positive momentum and hence, we expect an upmove in the near term.
Traders can look to buy the stock in the range of Rs 710-700 for potential near term targets of Rs 745 and Rs 765. The stop-loss on long positions should be placed below Rs 675.
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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