Shitij Gandhi
After a long weekend, bulls made a great comeback on April 7 as the Indian market posted sharp gains with Nifty and Bank Nifty indices gaining up to 10.5 percent in a single trading session, tracking positive cues from global markets.
On the derivative front, heavy open interest buildup was seen at 8,500 put strike which should act as immediate support for the Nifty.
On the technical front, some positive divergences on secondary oscillators can be seen on daily charts which point at further short-covering in days to come.
On the higher side, 8,850 should act as an immediate hurdle for Nifty, above which short-covering can get extended and Nifty can move towards 9,200 levels as well.
Bank Nifty is also forming a higher bottom pattern on daily charts and above 19,250 levels, the follow-up buying can be seen which could take the index towards 20,000 levels once again.
Here are three stock recommendations for the next 3-4 weeks:
This stock has given a sharp breakout above Rs 3,250 and breached three-year high on the charts with prices surpassing above Rs 3,550 level.
On the technical front, a breakout can be seen above the neckline of the inverted head and shoulder pattern on the daily charts.
Additional volumes along with a rise in price suggest fresh long build-up in the prices which could move the stock towards more highs in the coming days.
Traders can accumulate the stock in the range of Rs 3,550-3,500 for the upside target of Rs 4,170 with a stop loss below Rs 3,100.
The stock has been consistently moving higher on the broader charts with the formation of a higher high and higher bottom pattern.
At the current juncture, a fresh breakout has been observed on the charts as the stock price has moved above the psychological level of Rs 10,000 and hit a fresh 52-week high of Rs 10,700.
Additionally, the stock has also formed an inverted head and shoulder pattern on daily charts and given breakout above the neckline of the pattern formation.
Traders can accumulate the stock in the range of Rs 10,200-10,500 for the upside target of Rs 12,350 with a stop loss below Rs 8,950.
Abbott India | Buy | LTP: Rs 16,689 | Target price: Rs 19,050 | Stop loss: Rs 14,240 | Upside: 14%
Since February 2020, this stock has been seen trading in a downward sloping channel and tested Rs 12,500.
However, it took support at its 100-days exponential moving average on the daily charts and at the current juncture, formed a rounding bottom pattern with prices once again surpassing above its short and long-term moving averages.
The broader structure is still positive for the stock as it hit a fresh 52-week high of Rs 16,899 in Tuesday’s session.
Traders can accumulate the stock on dips in the range of Rs 16,200-16,000 for the upside target of Rs 19,050 with a stop loss below Rs 14,240.
(The author is Senior Technical Analyst at SMC Global Securities)
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