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Hot Stocks | Bet on Apollo Hospitals Enterprises, HUDCO for short term

The entire Healthcare space has been buzzing and seems to be finding its mojo back. Along with pharmaceutical companies, ‘Apollo Hospitals’ too performed well throughout this week.

June 05, 2023 / 06:45 AM IST
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The Nifty ended the lacklustre week marginally in the green and importantly a tad above the psychological 18,500 mark. The way markets took a leap at the opening last Monday, we expected the broader benchmark to challenge 18,700. So, it was certainly a disappointing behaviour of major indices as the week progressed.

Technically speaking, the upside gap area has been filled and Nifty has retested the breakout points twice during the week. In addition, due to Friday’s price action, the ‘Inside Bar’ candle is clearly visible on the daily time frame chart.

Going ahead, if global markets support, we can construe last week’s price development as a pullback and from here on, we may see the Nifty resuming its upwards trajectory in the current week. This view remains valid as long as cluster of support around 18,460 – 18,400 – 18,330 is not violated on a closing basis in the next couple of sessions.

On the flipside, the sturdy wall is visible around 18,600 – 18,670 and the moment it’s surpassed, we may see all-time high getting challenged soon. This seems possible considering the buoyancy in the broader market. The Mid and Small cap baskets remained active throughout last week, indicating improved sentiments in the market.

Hence, we advise traders not to get carried away by such small declines. Broadly, we are in a strong uptrend and it’s advisable to focus on the larger picture.

Here are two buy calls for the short term:

HUDCO: Buy | LTP: Rs 61.35 | Stop-Loss: Rs 57.80 | Target: Rs 68 | Return: 11 percent

Housing & Urban Development Corporation (HUDCO) has witnessed strong moves in the last couple of trading sessions which were backed by robust volumes. The recent price-volume action construes a positive development in the chart structure as it clocked a new 52-week high.

Also, on the momentum oscillator front, we witnessed a positive crossover in the RSI (relative strength index), which may provide the much-needed impetus for the next leg of the rally.

Based on the above evidences, we recommend buying for a trading target of Rs 68. The stop-loss can be placed at Rs 57.80.

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Apollo Hospitals Enterprises: Buy | LTP: Rs 4,967.30 | Stop-Loss: Rs 4,820 | Target: Rs 5,250 | Return: 6 percent

Recently, the entire Healthcare space has been buzzing and seems to be finding its mojo back. Along with pharmaceutical companies, ‘Apollo Hospitals’ too performed well throughout this week.

On Friday, we finally witnessed a massive breakout from the 15-month long ‘Ascending Triangle’ pattern on the daily chart. If we look at the volume activity, it has been rising continuously in the recent run.

The stock is now well poised for a much stronger move in the longer horizon. However, in the near term, we expect the stock to move towards Rs 5,250. The strict stop-loss needs to be placed at Rs 4,820.

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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.

Sameet Chavan is the Head Research - Technical and Derivatives at Angel One Ltd.

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