HomeFinanceBuy these two stocks for close to term gains even though Nifty...

Buy these two stocks for close to term gains even though Nifty faces resistance at 15,900


By Subash Gangadharan

On the day-to-day chart, the Nifty continues to hold above a increasing trend line that has held the essential lows of the last couple of months. This implies that the index remains in an intermediate uptrend. The Nifty has also not too long ago made greater bottoms at 14,591, 14,884 and 15,374 and continues to trade above the 20 and 50 day SMA, which offers additional proof of an uptrend.



The Nifty is even so obtaining resistance about the 15,900 levels as it has tested it twice in the last one week and failed to cross it. This 15,900 level could consequently cap the upsides for the close to term. A brief term correction is probably if the instant supports of 15,505-15,450 are broken.



The beneath picks are for the next 15-26 trading sessions

Buy CUB (City Union Bank)

After falling from a higher of 200 tested in November 2020, CUB located help about the 150 levels in April 2021. These levels also correspond to preceding intermediate highs tested in August 2020, implying the alter of polarity principle is at work as prior resistances are now acting as supports.

The stock then consolidated in a variety involving the 150 and 180 levels for the last couple of months with the 50 week SMA supplying help.

On Wednesday, the stock broke out of a 3 day trading variety just above the 50 week SMA, implying that a fresh upmove may possibly have just began. Daily momentum indicators like the 14-day RSI 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 consequently suggest a obtain involving the 165-169 levels. CMP is 167.85. Stop loss is at 163 even though targets are at 178.

Buy Siemens

Siemens has shown relative strength this week. While the Nifty has gained .08%, Siemens has gained .29% more than the identical period. The stock has been not too long ago consolidating above the 50 day SMA and on Wednesday, it broke out of a 3 day trading variety.

With the 50 day SMA supplying help, day-to-day momentum indicators like the 14-day RSI bouncing back from oversold levels and the intermediate technical setup as well seeking positive, we anticipate the stock to move greater in the coming sessions.

We, consequently, suggest a Buy involving the 2010-2040 levels. CMP is 2030. Stop loss is at 1990 even though targets are at 2110.

(Subash Gangadharan is a Senior Technical and Derivative Analyst, HDFC Securities. Views expressed are the author’s personal. Please seek advice from your economic advisor prior to investing.)



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