The brief term corrections and profit booking phases can not be ruled out, the general trend remains bullish
By Manish Hathiramani
The Nifty has been moving from strength to higher strength and continues to project a powerful momentum going forward. While brief term corrections and profit booking phases can not be ruled out, the general trend remains bullish. We just witnessed a sharp correction a couple of days back exactly where from a higher of 13777 the Nifty created a low of 13131. This has not changed the macro trend and one particular can nonetheless discover stocks worth investing in. I have shortlisted a couple of stocks inside the IT pack which in my opinion nonetheless have steam left and can propel the index additional.
INFOSYS: This stock has created a fantastic base about the 1000-1050 levels. Although we have seasoned variety bound movements in the final month or so, it has been increasing gradually and steadily. 1186 was the intermediate higher recorded on this stock and we are now trading above that level. It has also nudged its medium-term resistance of 1205. This tends to make it a fantastic purchase candidate. From a trading viewpoint, we can target 1250 with a quit loss at 1080 and from an investment horizon, one particular can target levels closer to 1450-1500 with a quit loss at 900.
TCS: It was crucial for this stock to get previous 2450 on a closing basis for an investment purchase which it did with total ease. The stock continues to stay in the hands of the bulls and we ought to endeavor a brief term target of 3000 with a quit loss of 2800. From an investment viewpoint, the target would be 3200 with a quit loss of 2600.
HCL TECH: The level of 800 was a fantastic assistance point for this stock and we have been capable to bounce from there rather immediately and in a span of 4-5 weeks we are trading above 900. There is nonetheless a lot of steam left and we could project a target of 1070-1100 and spot a quit loss at 795.
WIPRO: This stock has a comparable chartical structure to HCL TECH. The resistance level was 290 which the stock flew out of and accomplished 370-380 in just 3-4 weeks. We are headed larger and can trade for a target of 420 and a quit can be placed at 310.
(Manish Hathiramani is a proprietary index trader and technical analyst at Deen Dayal Investments. Views expressed are the author’s personal. Please seek the advice of your economic advisor ahead of investing.)