While the Nifty has corrected from the higher of 15,044, the index continues to hold above a increasing trend line that has held the vital lows of the last handful of months. This implies that the index remains in an intermediate uptrend. With the powerful bounce-back seen on Wednesday, traders will want to watch if the Nifty can now hold above the essential supports of 14,506-14,461 in the incredibly close to term. Further upsides are most likely as soon as the quick resistances of 14,723 are taken out.
Buy Torrent Pharmaceuticals
After correcting from a higher of Rs 3031 touched in August 2020, Torrent Pharma identified help about the Rs 2311 levels in March 2021. These levels also roughly coincide with the preceding swing lows of the stock tested in July 2020, implying that the Rs 2311 levels is a powerful help location.
On Wednesday, the stock moved up smartly and in the method took out its current highs on the back of above-typical volumes. This augurs properly for the uptrend to continue.
Technical indicators also are providing positive signals as the stock trades above the 50 day SMA and brief term momentum indicators like the 14-day RSI also have bounced back from decrease levels and are now in increasing mode and not overbought.
With the intermediate and lengthy term technical setups hunting positive, we think the stock has the possible to move greater in the coming weeks and hence advise a invest in amongst the Rs 2600-2640 levels. CMP is Rs 2627.35. Stop-loss is at Rs 2500 though targets are at Rs 2890.
Buy Shipping Corporation of India
SCI has not too long ago corrected from a higher of Rs 134.65 tested in early March 2021. The stock identified help at the Rs 97 levels just before bouncing back in the last two weeks and consolidating in a variety.
On Wednesday, the stock broke out of a narrow variety on the back of above-typical volumes. This augurs properly for the uptrend to continue.
Technical indicators are providing positive signals as the stock trades above the 20-day SMA. Short term momentum readings like the 14-day RSI also are in increasing mode and not overbought.
With the brief term and intermediate technical setups hunting eye-catching, we count on the stock to steadily move greater in the coming weeks. We, hence, advise a Buy amongst the Rs 114-118 levels. CMP is Rs 116.8. Stop-loss is at Rs 108 though targets are at Rs 138.
(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 just before investing.)