The market traded higher for yet another week, with the Nifty 50 consistently defending the 10-week EMA (exponential moving average) despite recent correction and forming higher highs, higher lows. The index traded above all key moving averages on the daily charts, while on the monthly charts, it has maintained higher highs, higher lows for fifth consecutive month ended on March 28.
As long as the index holds the 22,200 level, it may hit a record high of 22,526 in the coming days, while the psychological 22,000 mark is expected to be a crucial support area for the index, experts said.
The Nifty 50 rallied above 22,500 on expiry day but profit-booking at higher levels in late trade trimmed gains and, as a result, the index edged up 1 percent in the week to 22,327.
The RSI Smoothened indicator that recently witnessed a dip has turned northward and is flashing fresh buy signals. In the week beginning April 1, close attention will be paid to the all-time high levels above 22,500, as hesitation was evident at these levels, Rajesh Bhosale, technical analyst at Angel One, said.
He feels a sustained trade or a close above this point would confirm the resumption of the primary uptrend, potentially triggering a further rally in April. "Notably, 22,500 and then 22,680 stand as significant hurdles on the upside. Conversely, buying on dips remained a notable pattern during the week, suggesting that 22,200 serves as immediate support, while 22,000 and 21,700 represent subsequent key support levels," he said.
Jigar S Patel, senior manager of equity research at Anand Rathi, also anticipates fresh buying activity if the index surpasses the 22,500 level.
For the medium term, he maintains an optimistic outlook, asserting that as long as the support at 21,700 remains intact, the index retains the potential for further upward movement. "Looking ahead, the short-term support level has been adjusted to 22,000 for the current week starting from April 1.”
Moneycontrol collated a list of top 10 stocks from experts with 3-4 weeks perspective. The closing price of March 28 is considered for stock price calculation.
Expert: Nandish Shah, senior technical/derivative research analyst at HDFC Securities
S H Kelkar: Buy | LTP: Rs 205.5 | Stop-Loss: Rs 192 | Targets: Rs 225, 234 | Return: 14 percent
The stock price has broken out on the monthly chart from the symmetrical triangle with rise in volumes. Momentum indicators and oscillators like RSI (relative strength index) and MFI (money flow index) are in rising mode and placed above 60 on the weekly and monthly chart, indicating strength in the stock.
Kopran: Buy | LTP: Rs 258.6 | Stop-Loss: Rs 242 | Target: Rs 277, 292 | Return: 13 percent
Short term trend of the stock turned positive as stock price closed above its 5 and 20-day EMA (exponential moving average) with higher volumes. Primary trend of the stock is positive as stock price is trading above important medium and long term moving averages.
Accumulation has seen during last few days where up days volumes are sharply higher as compared to down days.
Bank of Maharashtra: Buy | LTP: Rs 62.35 | Stop-Loss: Rs 58 | Target: Rs 67.5, 70 | Return: 12 percent
The stock price has broken out from the downward sloping trendline on the daily chart, adjoining the highs of February 8 and March 6, 2024. Primary trend of the stock is positive as stock price is trading above important medium and long term moving averages. PSU bank as a sector looking strong on the short term charts.
Expert: Shrikant Chouhan, Head Equity Research, Kotak Securities
HDFC Bank: Buy | LTP: Rs 1,447.9 | Stop-Loss: Rs 1,395 | Target: Rs 1,550 | Return: 7 percent
After a short-term correction, the stock has formed reversal formation. On weekly charts, it has formed long bullish candle and after a long time the stock succeeded to close above 50-day SMA (simple moving average) which is largely positive.
We are of the view that, until it is trading above Rs 1,395, positional traders retain an optimistic stance and look for a target of Rs 1,550. Fresh buying can be considered now and on dips, if any between Rs 1,430 and Rs 1,410 levels with a stop-loss below Rs 1,395.
Tata Steel: Buy | LTP: Rs 155.85 | Stop-Loss: Rs 150 | Target: Rs 168 | Return: 8 percent
On daily and weekly charts, the stock has holding higher high and higher low series formation. Currently the stock is comfortably trading above 20-day SMA (simple moving average) and the texture of the charts indicating uptrend formation is likely to continue in the near future.
For the trend following traders now, Rs 150 would act as a key support zone. Above the same, the stock could move up till Rs 168/174. On the flip side below Rs 150, uptrend would be vulnerable.
Pidilite Industries: Buy | LTP: Rs 3,015 | Stop-Loss: Rs 2,910 | Target: Rs 3,230 | Return: 7 percent
In the last week, the stock registered a fresh all-time high of Rs 3,034. In last month, the stock rallied over 10 percent. On daily and weekly charts, the stock is consistently forming higher bottom formation, which is broadly positive.
The short-term texture of the chart indicating breakout continuation formation is likely to continue in the near future. For the breakout traders now, Rs 2,910 would act as a trend decider level. Above the same, the stock could rally till Rs 3,230/3,270. On the other side, below Rs 2,910 traders may prefer to exit from the trading long positions.
Expert: Riyank Arora, technical analyst at Mehta Equities
LIC Housing Finance: Buy | LTP: Rs 611 | Stop-Loss: Rs 585 | Target: Rs 650 | Return: 6 percent
The stock has given a good breakout above its recent anchor VWAP (volume weighted average price) resistance mark of Rs 606 and managed to give a good closing above the same. The RSI (14) on daily charts is touching 51, which indicates good momentum and strength in the counter.
Volume in Thursday's session was almost 1.75 times its average (30) days traded volumes, which again signals overall strength. At the current market price of Rs 610.95, the stock looks like a good buy with a strict stop-loss at Rs 585 for potential target of Rs 650 and above.
Grasim Industries: Buy | LTP: Rs 2,287.30 | Stop-Loss: Rs 2,200 | Target: Rs 2,400 | Return: 5 percent
The stock has given a good breakout above its recent all-time high mark of Rs 2,268 on its daily charts. With the volumes in stock being nearly 2 times, its average (30) days traded volume, the overall momentum looks strong, and the minor uptick in RSI (14) on daily charts from 52 to 63 is also indicating overall strength on the counter.
With a small stop-loss at Rs 2,200, we can see potential upside targets of Rs 2,400 and above in Grasim Industries.
State Bank of India: Buy | LTP: Rs 752.35 | Stop-Loss: Rs 730 | Target: Rs 790 | Return: 5 percent
The stock has given a good breakout above its recent anchor VWAP resistance mark of Rs 750 on the daily timeframe. An immediate support is placed around Rs 741.
Any pullback towards Rs 742-744 should offer a good buy opportunity on the stock with a small stop-loss at Rs 730 mark for potential upside target of Rs 790 and above. RSI (14) on daily charts is currently around 55, which is signaling good momentum and strength on the stock.
Expert: Om Mehra, technical analyst at Samco Securities
KSB: Buy | LTP: Rs 3,855.90 | Stop-Loss: Rs 3,680 | Target: Rs 4,180 | Return: 8 percent
The stock is forming higher highs and higher lows indicating a sustained uptrend. It is placed well above its short-term (20-day) and medium-term (50-day) moving averages suggesting bulls are in total control.
The RSI comfortably holding 55 levels and gradually inching higher indicating strength in the stock. Support from ascending trendline in the daily chart confirms a bullish setup as well.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 3,855.9 for a target price of Rs 4,180. The stop-loss can be kept at Rs 3,680.
Havells India: Buy | LTP: Rs 1,515 | Stop-Loss: Rs 1,460 | Target: Rs 1,600 | Return: 6 percent
The stock has bounced from its support zone and there has been significant volume in the past two trading sessions. The stock appears to be getting stronger as the RSI recovered from 48 to around 57 levels.
The lower Bollinger bands indicate strong support as well. If the stock manages to break above Rs 1,525 level it could further move higher.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 1,515 for a target price of Rs 1,600. The stop-loss can be kept at Rs 1,460.
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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
