After a rout in the previous week, the market rebounded with more than half a percent gains for week ended March 3, driven by Friday's smart rally of 1.5 percent. The Nifty50 has formed a decent bullish candlestick pattern with long lower shadow on the weekly scale, indicating support-based buying at lower levels.
"Formation of such pattern after the sharp weakness of previous week signal chances of upside bounce for the market ahead," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said.
The index jumped 129 points to 17,594 for the week, tad above 200-day EMA (exponential moving average - Rs 17,582).
In the coming sessions, 17,700-17,800 levels (5 and 21 EMA - exponential moving average on weekly scale) are expected to be next resistance area for the index and if the said levels get passed then psychological 18,000 mark which coincides with 20-day SMA (simple moving average) is likely to be crucial hurdle, with the support at 17,400-17,255 area, experts said.
The broader markets outperformed frontline indices on positive breadth as the Nifty Midcap 100 index jumped 2 percent and Smallcap 100 index climbed 1 percent during the week.
"17,500 is now likely to be seen as the immediate support zone, while the sacrosanct support lies around the 17,350-17,400 zone, coinciding with the 200 SMA. On the flip side, the bearish gap of 17,770-17,800 is expected to act as the sturdy hurdle for Nifty in a comparable period," Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One said.
Going forward, he advised the traders to utilize the dips to add long position in the index.
Simultaneously, one should also keep a close tab on the midcap space, which is expected to provide immense trading opportunities in the near period, he 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 January 13 closing prices:
Expert: Shrikant Chouhan, Head of Equities Research (Retail) at Kotak Securities
Apollo Hospitals: Buy | LTP: Rs 4,408 | Stop-Loss: Rs 4,300 | Target: Rs 4,550 | Return: 3 percent
The stock is in the process of forming a higher bottom between Rs 4,350-4,375. The stock witnessed a strong surge after the announcement of the Q3 results. It was at Rs 4,170 and it rallied to Rs 4,670.
Such type of formation offers an opportunity to buy with the stock with a short term view as reward to risk is favourable for bulls. Buy at current levels and keep a stop-loss at Rs 4,300. On the higher side, the stock could bounce to Rs 4,500 or Rs 4,550 in the near term.
Federal Bank: Buy | LTP: Rs 134 | Stop-Loss: Rs 129 | Target: Rs 150 | Return: 12 percent
The stock is relatively strong compared to other bank stocks. It is only seven percent below the immediate highs and all-time highs it made at Rs 143.
On a daily chart basis, it is making a higher bottom at Rs 124 as compared to Rs 120, which it made in the month of December 2022. A buy is recommended at current levels for a target of Rs 143 and Rs 150. For this, keep a stop-loss at Rs 129.
Mukand: Buy | LTP: Rs 135.5 | Stop-Loss: Rs 127 | Target: Rs 165 | Return: 22 percent
It has been forming a Double Bottom for the past few days. However, on last Friday, it validated a formation by crossing Rs 136 level.
Technically, the stock should move towards Rs 150 level in the coming days. On the long-term chart also, it has developed a rounding bottom formation which may lift the stock towards Rs 165 in the coming few weeks. Buy at current levels and place stop-loss at Rs 127.
Expert: Vinay Rajani, Senior Technical & Derivative Analyst at HDFC Securities
UCO Bank: Buy | LTP: Rs 28.05 | Stop-Loss: Rs 24.70 | Target: Rs 32 | Return: 14 percent
Stock price has broken out from downward sloping trend line on the daily chart. Primary trend of the stock has been bullish as it has been holding above its 200 DMA (day moving average or simple moving average) since long.
The stock price has reclaimed its level above 50-day EMA (exponential moving average). PSU Bank index has started outperforming after healthy correction from recent peak. Indicators and oscillators have turned bullish on the daily charts.
RITES: Buy | LTP: Rs 350.6 | Stop-Loss: Rs 311 | Target: Rs 400 | Return: 14 percent
The stock price has broken out from downward sloping trend line on the daily chart. Price Breakout is accompanied by jump in volumes. Higher tops and higher bottoms on the daily chart.
Indicators and oscillators like MACD (moving average convergence divergence) and RSI (relative strength index) have turned bullish on the daily chart.
Railway sector has resumed its outperformance. Stock price is places above important long term moving averages.
Varun Beverages: Buy | LTP: Rs 1,358 | Stop-Loss: Rs 1280 | Target: Rs 1,428 | Return: 5 percent
The stock price has been forming higher tops and higher bottoms on the daily chart. Stock price has surpassed crucial resistance of Rs 1,350 with rising volumes.
The stock is trading above all important moving averages, which indicates bullish trend on all time frames. Indicators and oscillators have been showing strength on the daily and weekly charts.
Expert: Ruchit Jain, Lead Research at 5paisa.com
Trent: Buy | LTP: Rs 1,305 | Stop-Loss: Rs 1,240 | Target: Rs 1,430 | Return: 10 percent
Post a corrective phase, the stock had recently seen an upmove from Rs 1,155 to Rs 1,378 which was a five wave impulsive move. Technically, this indicates a short term uptrend and the prices have also retraced this recent upmove by 50 percent.
The volumes during the upmove were high while those on correction were low. Looking at the correct chart structure we expect the stock to resume its upmove and hence, we advise traders to look for buying opportunities for the near term.
Hence, traders can buy the stock in the range of Rs 1,310-1,300 for potential short term targets of Rs 1,375 and Rs 1,430. The stop-loss on long positions should be placed below Rs 1,240.
L&T Finance Holdings: Buy | LTP: Rs 91.35 | Stop-Loss: Rs 86.5 | Target: Rs 100 | Return: 9.5 percent
The stock has recently seen a consolidation phase which just seems to be a time-wise correction within an uptrend. Prices have managed to form support around its ‘89 DEMA’ and seem to be gearing up for the next leg of upmove.
The RSI (relative strength index) oscillator has given a positive crossover and is in ‘buy mode’. Hence, we expect the stock to rally towards the higher end of the pattern first and if it gives a breakout above the same, then it would witness a decent upmove.
Traders are advised to buy the stock around current market price of Rs 91 for potential near term targets of Rs 95 and Rs 100. The stop-loss for long positions should be placed below Rs 86.50.
Expert: Jatin Gohil, Technical and Derivative Research Analyst at Reliance Securities
Crompton Greaves Consumer Electricals: Buy | LTP: Rs 311 | Stop-Loss: Rs 290 | Target: Rs 370 | Return: 19 percent
After a higher level of reversal (43 percent fall from its life-time-high of Rs 513), the stock formed a base around its prior point of polarity and poised for a rebound. This could lead the stock towards its highest level of December 2022.
The key technical indicators are in favour of the bulls on short-term timeframe chart. In case of any decline, the stock will find support around its recent swing low.
United Spirits: Buy | LTP: Rs 756 | Stop-Loss: Rs 710 | Target: Rs 870 | Return: 15 percent
In the last week, the stock breached its prior falling trend and reported rise of 1.7 percent. The stock found multiple supports around Rs 730, where its prior point of polarity, extended falling trend line and intermediate upper band of the channel are placed.
Major technical indicators witnessed a bullish divergence on short-term timeframe chart. The stock has potential to test its January 2023 breakdown line.
On the lower side, the stock may take support around the lowest level of June 2022.
SRF: Buy | LTP: Rs 2,272 | Stop-Loss: Rs 2,140 | Target: Rs 2,470 | Return: 9 percent
The stock retested its upper band of the falling channel after a breakout and resumed its up-move. This could take the stock towards Rs 2,400 initially and Rs 2,470 subsequently.
The key technical indicators are in buy mode on medium-term as well as short-term timeframe charts. In case of any decline, the stock may find support around its recent swing low.
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!
