By Subash Gangadharan
Nifty moved up additional on Wednesday to touch a new life higher. Though promoting stress emerged in the afternoon session and pulled the index reduced, the quick term trend of the Nifty remains up and traders will require to watch if the Nifty can hold above the quick assistance of 16608 for a retest of the life highs else we could see a quick term correction towards the next assistance of 16592.
On the day-to-day chart, the Nifty continues to hold above a increasing trend line that has held the crucial lows of the last couple of months. This implies that the index remains in an intermediate uptrend. The index also continues to trade above the 20 and 50 day SMA, which provides additional proof of an uptrend.
And lately, Nifty has broken out of the 15451-15962 trading variety, which is an encouraging signal for the uptrend to continue. Upside target implications are at 17000. However, we stay open to the possibility of the Nifty correcting towards the 16286 levels in the coming weeks. We propose obtaining on any dips.
Stock picks for next 15-26 trading sessions
Buy Balrampur Chini
Balrampur Chini has shown relative strength this week. While the Nifty index has gained marginally, this stock has surged larger by 3.88%. In the procedure, the stock has also broken out of its current trading variety on the back of above typical volumes.
Technical indicators are providing positive signals as the stock trades above an upward sloping 20 week and 50 week SMA. Daily momentum indicators like the 14-day RSI as well have bounced back and are in increasing mode now, which augurs properly for the uptrend to continue.
With the intermediate technical setup searching positive, we think the stock has the possible to move larger to new life highs in the coming weeks and thus propose a get amongst the 369-373 levels. CMP is 371. Stop loss is at 347 when targets are at 420.
Buy Adani Ports
After correcting from a life higher of 901 touched in early June 2021, Adani Ports located assistance at the 638 levels in mid June 2021. The stock has then consolidated in a variety amongst the 638-762 levels for the last two months.
On Wednesday, the stock closed above the 20 and 50 day SMA on the back of above typical volumes. Daily momentum indicators like the 14-day RSI as well have bounced back from oversold levels and are in increasing mode now.
With the intermediate and lengthy term technical setup searching positive, we think the stock has the possible to move larger in the coming weeks and thus propose a get amongst the 717-725 levels. CMP is 721.1. Stop loss is at 690 when targets are at 785.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. The views expressed are the author’s personal. Please seek the advice of your monetary advisor prior to investing.)