Crucial supports to watch for a brief term trend reversal are at 13864-13842.
By Subash Gangadharan
Markets have bounced back strongly right after the sharp selloff noticed final Monday. The Nifty index produced a lengthy-legged Doji candlestick bullish reversal pattern on the weekly chart final week. This indicates that the bulls have overpowered the bears as the markets had recovered most of the losses noticed through the early component of final week. This week also the Nifty has continued to surge greater to new life highs. The brief term uptrend is, on the other hand, hunting matured as the brief term moving averages on the intraday charts have began to flatten. This indicates that markets could rise a bit more from present levels and consolidate in a variety for the close to term. Crucial supports to watch for a brief term trend reversal are at 13864-13842. The under picks are for the subsequent 15-26 trading sessions
Buy Maruti After correcting from a higher of 8013, Maruti discovered assistance at the 7205 levels. These levels also coincide with the 50-day SMA, thereby creating it a powerful assistance. The sock has considering the fact that then rebounded and regularly been creating greater tops and greater bottoms more than the final couple of sessions.
Today, the stock also closed above the 20 day SMA, a sign of brief term strength. Short term momentum readings like the 14-day RSI also has bounced back and is displaying strength.
We think the stock is prepared to continue the subsequent leg of its underlying uptrend and has the possible to move greater in the coming sessions. We, as a result, suggest a Buy involving the 7560-7615 levels. CMP is 7609. Stop-loss is at 7430 whilst targets are at 8000.
Buy Balkrishna Industries
After correcting from a higher of 1720 touched in early December 2020, Balkrishna Industries discovered assistance at the 50 day SMA about the 1515 levels. The stock has considering the fact that then progressively climbed greater creating greater tops and greater bottoms in the course of action.
Today, the stock broke out of the 1550-1590 trading variety on the back of above-typical volumes and also closed above the 20-day SMA in the course of action. Short term momentum indicators like the 14-day RSI also have bounced back from oversold levels. This augurs effectively for the uptrend to continue.
We think the stock is prepared to move greater in the coming weeks. We, as a result, suggest a Buy involving the 1590-1625 levels. CMP is 1620. Stop-loss is at 1550 whilst targets are at 1760.
(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 economic advisor prior to investing.)