By Subash Gangadharan
On the day-to-day chart, the Nifty continues to hold above a increasing trend line that has held the critical lows of the last handful of months. This implies that the index remains in an intermediate uptrend. The Nifty has also lately made greater bottoms at 14416, 14591 and 14884 and continues to trade above the 20 and 50 day SMA, which provides additional proof of an uptrend.
While we anticipate the Nifty to move greater and make new life highs in the coming sessions, we also stay open to brief term corrections and price tag consolidations. Crucial supports are at 15459-15374.
Buy RBL Bank
After falling from a higher of 274 tested in January 2021, RBL Bank discovered assistance about the 169 levels in April 2021. The stock had previously discovered assistance about these similar levels in September 2020, implying that it is a sturdy assistance.
The stock then consolidated in a variety involving the 169 and 197 levels just before breaking out of this variety in May 2021 on the back of above-typical volumes. On Wednesday, the stock closed above the earlier intermediate highs of 219 and also above the 200 day EMA.
Other technical indicators also are providing positive signals as the stock is trading above the 20 and 50 day SMA. Weekly momentum indicators like the 14-week RSI have bounced back and are in increasing mode now, which augurs nicely for the uptrend to continue.
With the intermediate technical setup searching positive, we think the stock has the possible to move greater in the coming weeks and thus advise a acquire involving the 218-223 levels. CMP is 221.9. Stop-loss is at 208 though targets are at 255.
Buy Apollo Tyre
Apollo Tyre has lately corrected from a higher of 261 tested in March 2021. The stock has discovered assistance about the 198 levels which also roughly coincides with a earlier intermediate low. This indicates that the 198 level is a sturdy assistance.
With the stock now increasing smartly from these supports and breaking out on Wednesday of a current trading variety, the uptrend appears set to acquire momentum in the coming sessions.
Technical indicators are providing positive signals as the stock is trading above the 20 day and 50 day SMA. Daily momentum indicators like the 14-day RSI also have bounced back from oversold levels and are in increasing mode now.
With the intermediate technical setup searching positive, we think the stock has the possible to move greater in the coming weeks. We, thus, advise a Buy involving the 228-233 levels. CMP is 231.1. Stop-loss is at 220 though targets are at 260.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views expressed are the author’s personal. Please seek advice from your investment advisor just before investing.)