By Subash Gangadharan
The Nifty continues to consolidate in a variety among 15500-15916 for the last quite a few weeks. The 15900-15916 levels have been tested quite a few occasions more than the similar period and identified resistance. Even on Tuesday the Nifty reacted from the 15916 levels and corrected. But on Wednesday, the Nifty has once more resumed climbing greater on the back of increasing momentum readings like the 14-day RSI.
This increases the odds of a breakout taking place in the pretty close to term. A breakout above the 15916 levels could lead to the Nifty heading towards the 16000-16100 levels. Crucial supports to watch for resumption of weakness are at 15779.
The beneath picks are for the next 15-26 trading sessions
Buy TeamLease Services
Teamlease Services is in an intermediate uptrend as it continues to make greater tops and greater bottoms more than the last quite a few months.
Over the last one week, the stock has been consolidating in a variety among the 3521-3755 levels with the 20 day SMA supplying help. On Wednesday, the stock broke out of this variety on the back of above-typical volumes. This augurs nicely for the uptrend to continue.
Technical indicators are providing positive signals as the stock trades above the 20 day and 50 day SMA. Daily momentum indicators like the 14-day RSI as well have bounced back and are in increasing mode now, which augurs nicely for the uptrend to continue.
With the intermediate technical setup as well seeking positive, we think the stock has the possible to move greater in the coming weeks and hence advocate a acquire among the 3700-3800 levels. CMP is 3763. Stop loss is at 3570 when targets are at 4200.
Buy RBL Bank
After falling from a higher of 274 tested in early January 2021, RBL Bank identified help about the 169 levels in April 2021. These levels also correspond to prior intermediate lows tested in October 2020, implying they are sturdy supports.
The stock has then progressively climbed greater and then consolidated in a variety among the 206 and 218 levels for the last couple of weeks. On Wednesday, the stock broke out of this variety on the back of above-typical volumes.
Technical indicators are providing positive signals as the stock trades above the 20 day and 50 day SMA. Daily momentum indicators like the 14-day RSI as well are in increasing mode and not overbought, which augurs nicely for the uptrend to continue.
With the intermediate technical setup seeking positive, we think the stock has the possible to move greater in the coming weeks and hence advocate a acquire among the 220-225 levels. CMP is 223.35. Stop loss is at 208 when targets are at 255.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views expressed are the author’s personal. Please seek the advice of your economic advisor prior to investing)