By Subash Gangadharan
The Nifty continues to consolidate in a variety for the last couple of sessions immediately after breaking out of the 15451-15962 trading variety last week. On the everyday chart, the Nifty continues to hold above a increasing trend line that has held the crucial lows of the last couple of months. The index also continues to trade above the 20 and 50 day SMA.
Given that the Nifty has broken out of a 500 point variety last week, upside target implications for the coming weeks are at 16500. Short term trend reversal levels are at 16105.
The beneath picks are for the next 15-26 trading sessions
Buy Tata Chemicals
Tata Chemicals has shown relative strength this week. While the Nifty index has gained marginally, this stock has surged larger by 4.4%. In the procedure, the stock has also closed at a new life higher, thereby continuing its intermediate uptrend.
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 have bounced back and are in increasing mode now, which augurs properly for the uptrend to continue.
With the intermediate technical setup also seeking positive, we think the stock has the prospective to move larger to new life highs in the coming weeks and consequently propose a obtain among the 858-862 levels. CMP is 860. Stop loss is at 800 whilst targets are at 980.
Buy Vedanta
Vedanta has broken out of a 7-day trading variety on Wednesday on the back of above-typical volumes. In the procedure, the stock has also closed at a 52 week higher.
Technical indicators are providing positive signals as the stock trades above the 20 day and 50 day SMA. Daily and weekly momentum indicators like the 14-day and 14-week RSI are in increasing mode and not exceptionally overbought, which is encouraging.
With the intermediate technical setup seeking positive, we think the stock has the prospective to move larger in the coming weeks and consequently propose a obtain among the 323-325 levels. CMP is 324.45. Stop-loss is at 300 whilst targets are at 375.
(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 just before investing.)