By Subash Gangadharan
Nifty has lately corrected from a higher of 17793 seen last Friday. The index nevertheless discovered help at reduced levels and managed to hold above the critical brief term trend reversal levels of 17254. The bounce-back seen on Tuesday led to the Nifty closing above the 20 and 50 period MA on the 15 min chart, indicating that the extremely close to term trend has turned positive.
On the day-to-day chart, the Nifty has lately made larger bottoms at 16565, 17055 and 17254 and continues to trade above an upward sloping 20 and 50 day SMA, which provides proof that the intermediate uptrend is intact. The Nifty could now try to retest its present life highs of 17793 in the coming sessions.
The under picks are for the next 15-26 trading sessions
Buy Apollo Tyres
Apollo Tyres has shown relative strength this week. While the Nifty index has lost marginally, this stock has surged larger by 3.94%. In the method, 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 increasing mode now, which augurs properly for the uptrend to continue.
With the intermediate technical setup seeking positive, we think the stock has the possible to move larger and take out its prior intermediate highs in the coming weeks and as a result advise a obtain amongst the 230-234 levels. CMP is 232.4. Stop-loss is at 214 even though targets are at 274.
Buy Kiri Industries
After correcting from a higher of 679 touched in June 2021, Kiri Industries discovered help at the 461 levels in August 2021. These levels correspond to the prior intermediate lows of the stock tested in June 2021, thereby creating it robust help.
The stock has bounced back properly 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 increasing mode, which is encouraging.
With the intermediate and lengthy term technical setup seeking positive, we think the stock has the possible to move larger in the coming weeks and as a result advise a obtain amongst the 536-541 levels. CMP is 538.95. Stop-loss is at 495 even though targets are at 640.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views expressed are the author’s personal. Please seek advice from your economic advisor just before investing.)