By Subash Gangadharan
Markets have bounced back smartly immediately after the sharp fall observed on 26th February 2021. The Nifty identified assistance at the 50 day SMA and has steadily climbed larger more than the final two weeks.
On the day-to-day chart, the Nifty remains in uptrend and continues to trade above the 20 day SMA. With the Nifty now breaking out of the 14862-15111 variety, upside targets for the Nifty are at the current higher of 15273. Crucial assistance to watch for emergence of weakness is at 15100.
The beneath picks are for the next 15-26 trading sessions
Buy Larsen & Toubro Infotech (LTI)
After correcting from a higher of 4483 touched in January 2021, LTI identified assistance about the 3570 levels in February 2021. These levels also coincide with the 20 week SMA, creating it a sturdy assistance.
The stock has because then rebounded and steadily produced larger tops and larger bottoms more than the final two weeks. On Wednesday, the stock broke out of its current swing highs of 4015 on the back of big volumes, indicating that the uptrend appears set to continue.
indicators are providing positive signals as the stock is trading above the 20 and 50 day SMA and quick term momentum indicators like the 14-day RSI are in increasing mode and not overbought.
With the intermediate and extended term technical setups also searching positive, we think the stock has the prospective to move larger in the coming weeks and thus propose a get among
the 4080-4142 levels. CMP is 4138.5. Stop loss is at 3900 though targets are at 4650.
Buy Eicher Motors
Eicher Motors has lately corrected from a higher of 3037 tested in January 2021. The stock identified assistance at the 2450 levels ahead of bouncing back in the final two weeks and consolidating in a variety.
On Wednesday, the stock broke out of a narrow variety on the back of above typical volumes. This augurs effectively for the uptrend to continue.
indicators are providing positive signals as the stock trades above the 20-day SMA. Short term momentum readings like the 14-day RSI also are in increasing mode and not overbought.
With the quick term and intermediate technical setups searching appealing, we count on the stock to steadily move larger in the coming weeks. We thus propose a Buy among the 2650-2680 levels. CMP is 2673.9. Stop loss is at 2570 though targets are at 2900.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. The views expressed are the author’s personal. Please seek the advice of your monetary advisor ahead of investing.)