By Subash Gangadharan
After consolidating for the last handful of sessions, the Nifty has broken out to new life highs on Wednesday. Zooming into the 60 min chart, we can see that the index is holding above a increasing 20 and 50 period MA indicating that the uptrend appears set to continue.
RSI momentum readings as well are not overbought on each the 60 min and every day chart timeframes, which is encouraging. The Nifty could try to test the 18250-18300 levels in the coming sessions.
The under picks are for the next 15-26 trading sessions
Buy Tata Consumer Products
Tata Consumer Products has shown relative strength this week. While the Nifty index has gained 1.5%, Tata Consumer has gained a healthier 4.03%. In the course of action, the stock has also broken out of its current trading variety on the back of above-typical volumes.
Technical indicators are providing positive signals as the stock trades above the 20 and 50 day SMA. Daily momentum indicators like the 14-day RSI as well have bounced back and are in the increasing mode now, which augurs effectively for the uptrend to continue.
With the intermediate technical setup hunting positive, we think the stock has the possible to move larger and take out its preceding intermediate highs in the coming weeks and thus propose a invest in among the 845-855 levels. CMP is 851.75. Stop-loss is at 810 when targets are at 945.
Buy Cholamandalam Investment and Finance corporation
After correcting from a higher of 601 touched in April 2021, Chola Finance identified help at the 470 levels in August 2021. These levels also corresponded to the 200 day EMA, thereby producing it a sturdy help.
The stock has bounced back effectively in the last handful of weeks from these supports and has made a larger bottom. The stock is trading above the 20 and 50 day SMA and momentum readings like the 14-day RSI as well are in the increasing mode, which is encouraging.
With the intermediate and lengthy term technical setup hunting positive, we think the stock has the possible to move larger in the coming weeks and thus propose a invest in among the 590-600 levels. CMP is 596.5. Stop-loss is at 570 when targets are at 660.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views expressed are the author’s personal. Please seek advice from your monetary advisor ahead of investing)