Shitij Gandhi
After witnessing a steep cut in the previous session, the Indian market bounced back sharply on March 31, tracking firm global markets.
The Nifty reclaimed 8,575 this week after some lower-level buying was witnessed in heavyweights like Reliance Industries, HDFC twins and Infosys.
However, on the technical front, the Nifty and the Nifty Bank indices are still trading in a bearish channel and on the higher side, 8,800-9,000 zone for the Nifty while 19,500-20,000 zone for the Bank Nifty should act as a strong hurdle.
On the derivatives front, put writers were seen adding open interest at 8,400 and 8,500 strikes, which should provide some support to the market.
Till then, we can expect some stock-specific action along with some volatility in a broader range of 8,400-9,000 in the coming few sessions.
Here are three stock recommendations for the next 3-4 weeks:
CESC | Buy | LTP: Rs 407 | Target price: Rs 465 | Stop loss: Rs 365 | Upside: 14 percent
For the last two months, the stock has been beaten down as the prices have witnessed a sharp fall from Rs 700 towards Rs 370 levels.
On the technical front, however, the stock has tested its 200-day exponential moving average on monthly charts and bounced back sharply to reclaim above-Rs 400 level in a week’s time.
At the current juncture, some consolidation can be seen from the last four-five sessions and also the stock has formed a Doji star pattern on the daily charts.
The secondary oscillators are suggesting a bounce into the prices, as the stock has also given a breakout above the falling trendline of a sloping channel on a shorter timeframe.
Traders can accumulate the stock in the Rs 400-410 range for the upside target of Rs 465 with a stop loss below Rs 365.
After witnessing a steep fall from Rs 2,250 to Rs 1,800, the stock saw a V-shape recovery and made a new 52-week high on March 31.
The stock has once again surpassed its short and long-term moving averages on broader charts as well, with some long build-up into the prices.
The V-shape recovery has been seen with marginally higher volumes, which suggests a further up move in the coming sessions as well.
Traders can accumulate the stock in the Rs 2,270-2,290 range for the upside target of Rs 2,670 with a stop loss below Rs 2,050.
In recent weeks, this stock has also given almost a V-shape recovery after testing 100-day exponential moving average on the weekly charts.
Despite the weak market sentiment, the stock has shown strength from the lower levels as recovery was seen with some heavy volumes, which suggests long build-up into the prices.
At the current juncture, however, the stock is facing immediate resistance at Rs 16,800 but positive divergences on secondary oscillators suggest that the stock can move beyond its 52-week high of Rs 16,835 in the coming sessions.
Traders can accumulate the stock on dips in the range of Rs 15,850-15,700 for the upside target of Rs 18,370 with a stop loss below Rs 14,000.
(The author is Senior Technical Analyst at SMC Global Securities)
Disclaimer: The views and investment tips expressed by 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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