By Subash Gangadharan
Nifty has been consolidating in a tight variety for the last handful of sessions. The index nonetheless remains in an uptrend. On the day-to-day time frame, Nifty has lately made larger bottoms at 16162, 16376 and 16565 and continues to trade above the 20 and 50 day SMA, which provides additional proof of an intermediate uptrend.
On the 60 minute chart, the Nifty has bounced back on Wednesday from close to its 50 period MA. This indicates that the uptrend appears set to continue. Immediate upside targets for the Nifty are at 17500. Crucial supports to watch for the emergence of weakness are at 17238.
The beneath picks are for the next 15-26 trading sessions
Buy KEI Industries
Kei Industries has shown relative strength this week. While the Nifty index has gained marginally, this stock has surged larger by 6.19%. 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 an upward sloping 20 week and 50 week SMA. Daily momentum indicators like the 14-day RSI as well have bounced back and are in increasing mode now, which augurs effectively for the uptrend to continue.
With the intermediate technical setup searching 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 820-832 levels. CMP is 827.9. Stop-loss is at 770 although targets are at 960.
Buy Federal Bank
After correcting from a higher of 91 touched in mid-July 2021, Federal Bank located assistance at the 77 levels in late August 2021. These levels correspond to the prior intermediate lows of the stock tested in May 2021 and also the 200 day EMA, thereby creating it a powerful assistance.
The stock has bounced back effectively in the last handful of sessions from these supports and is now trading above the 20 day SMA. Momentum readings like the 14-day RSI as well are in increasing mode, which is encouraging.
With the intermediate and extended term technical setup as well searching positive, we think the stock has the prospective to move larger in the coming weeks and consequently propose a obtain among the 82-84 levels. CMP is 83.45. Stop loss is at 79 although targets are at 94.
(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 monetary advisor just before investing.)