The Nifty 50 saw a breakout, especially with significant movements in the IT sector, reaching unprecedented levels and securing a gain of 0.85 percent for the week ending on January 12. The index concluded the week by achieving a record closing high at 21,894.50.
At the current juncture, the milestone of 22,000 is within close reach, and given the present structural configuration, the next potential target for the coming week is projected to be in the range of 22,100-22,150. On the downside, 21,800-21,750 is expected to serve as a support level in case of any short-term decline, with robust support further situated around the 21,600-21,500 zone.
However, the Bank Nifty index, a major heavyweight, still lacks conviction, and its participation is crucial to strengthen momentum in the coming week.
As the rally has been backed by sectoral participation, a thorough check on a regular basis is required to project immediate trends.
Here are two buy calls for short term:
Dixon Technologies: Buy | LTP: Rs 6,554 | Stop-Loss: Rs 6,280 | Target: Rs 6,880-6,900 | Return: 5.3 percent
Dixon has seen strong buying traction in the last couple of trading sessions and has managed to sustain above its 21 DEMA (day exponential moving average) on the daily charts. Also, the stock has witnessed a descending slope line breakout on the daily chart in the last trading session, and is expected to gain momentum in the near term.
The 14-period RSI (relative strength index) witnessed a positive crossover, adding to the bullish quotient, and it is expected to gain substantial traction in the near period.
Hence, we recommend buying Dixon Technologies around Rs 6,550-6,530, with a stop-loss of Rs 6,280 and target of Rs 6,880-6,900.
Finolex Industries: Buy | LTP: Rs 241.30 | Stop-Loss: Rs 228 | Target: Rs 254-256 | Return: 6 percent
Finolex Industries has seen a strong rebound from its major EMAs on the daily charts, and has soared above its crucial resistance zone. At present, the stock has formed a flag pattern, which could provide a strong thrust to the upward momentum in the near term.
Additionally, the earlier resistance zone is now likely to provide strong support to the counter. Also, the other indicators are strongly in line with the bullish formation.
Hence, we recommend buying Finolex Industries at around Rs 240-238, with a stop-loss of Rs 228 and target of Rs 254-256.
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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