The trend seems to be on the upside and the ideal strategy is to buy on dips just like we saw on Friday when market witnessed mild profit booking decline which was quickly bought into
The Nifty50 index rose to fresh record highs last week and came closer to its next crucial resistance level of 10,700. The index closed with gains of 1.1 percent for the week ending January 12, however, the coming week is likely to be volatile.
The trend seems to be on the upside and the ideal strategy is to buy on dips just like we saw on Friday when market
But, some of the indicators are giving indications of Nifty being in an overbought zone and profit booking decline is possible ahead of the budget. Investors should maintain their long positions as long as 10,550 remains intact.
“We had highlighted that the index is not finding similar sort of strength if manages to breakout in the upward direction. Also, the possibility of volatility increasing was on the cards. All these factors were seen during the session and due to smart recovery, the Nifty eventually ended the week on a high note,” Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking Pvt Ltd told Moneycontrol.
Dewan Housing Finance Corporation Limited (DHFL): BUY | Target Rs 680| Stop Loss Rs 570| Time 1-2 months| Return 11%
The stock closed at 614.15 on 12th January 2018. It made a 52-week low at 264.10 on 13th January 2017 and a 52-week high of 679 on 03rd November 2017.
The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at 511.64. After registering an all-time high, stock consolidated in the range of Rs570-620 levels for five weeks and was forming a “Continuation Triangle” on the weekly charts, which is a bullish pattern.
Last week, the stock has given the breakout of pattern and also has managed to close above the same. On the indicators front, RSI and MACD are also showing strength at current levels.
Therefore, one can buy in the range of Rs600-608 levels for the upside target of Rs670-680 levels with a stop loss below Rs570.
Analyst: Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking Pvt Ltd
RCF: BUY| Target Rs150| Stop Loss Rs85| Time 3-4 months| Return 42%
The stock is moving in a sideways direction and is making 'Lower Highs Higher Lows' on the monthly chart. The consolidation phase of last ten years has resulted in the formation of a 'Symmetrical Triangle' pattern on the monthly time frame.
Currently, we are witnessing a breakout from the mentioned pattern with decent volume (see exhibit), which is a positive sign for the stock.
Momentum oscillator such as ‘RSI’ and ‘MACD’ too are supporting the bullish argument on the counter. Thus, traders are advised to buy the stock at the current juncture and on declines to Rs103 for a target price of Rs142 - 150 in the coming 3-4 months. The stop-loss for the trade set-up should be placed at Rs85 on a closing basis.
Bata India: BUY | Target Rs 960| Stop Loss Rs 685| Time few weeks| Return 29%
After a decent rally from Rs507.60 to Rs832.80, the stock has started moving in a corrective phase from the last couple of months.
The fall got arrested around the 38.20 percent retracement level of the above-mentioned rally and the stock has started rebounding piercingly.
We witnessed a formation of a couple of ‘Doji’ candles on weekly chart around the support levels, which was followed by a positive momentum. The ‘RSI’ oscillator is showing ‘Positive Reversal’ on the weekly chart and thus showing strength in the counter.
Thus, traders are advised to buy the stock at current juncture and on declines to Rs735 for a target price of Rs920 – 960 in the coming weeks. The stop-loss for the trade set-up should be placed at Rs685 on a closing basis.
Titagarh Wagon Ltd: BUY| Target Rs225| Stop Loss Rs157| Time 3-4 months| Return 29%
After a decent rally from Rs 105.55 to Rs 189.70, the stock has seen some correction in the recent past. However, the stock again started rebounding after taking the support of the 38.20 percent retracement level of the mentioned rally.
On the monthly chart, we witnessed a ‘Trendline’ breakout in November 2017 and the prices managed to sustain above the same.
Considering the positive placement of ‘RSI’ and ‘MACD’ oscillator we are expecting a resumption in the uptrend. Hence, short-term investors can buy the stock at current juncture for a target of Rs205 – 225 in the coming quarter. The stop-loss should be kept at Rs157 on a closing basis.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not that of the website or its management
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