 "Short-term bias for Nifty seems weak, says Subash Gangadharan")
Over the last few weeks, the Nifty has been stuck in a range between the 50-day SMA and 20-day SMA. On the daily chart, we can see that after briefly moving above the 20-day SMA, the Nifty has once again moved below the 20-day SMA on Tuesday.
In the process, the Nifty has corrected and broken its recent supports, implying the short-term bias is weak. The Nifty is likely to drift down further towards the next major supports of 17,905-17,798 in the very near term. Any pullback rallies could find resistance at 18,133.
The below picks are for the next 15-26 trading sessions
Buy
Chambal Fertilisers & Chemicals
Chambal Fertilisers & Chemicals has shown relative strength this week. While the Nifty index has lost 0.77 per cent, Chambal Fertilisers has gained a healthy 8.89 per cent. In the process, the stock has also broken out of its recent trading range on the back of healthy volumes.
Technical indicators are giving positive signals as the stock trades above the 20 and 50-day SMAs. Daily momentum indicators like the 14-day RSI too have bounced back and are in rising mode now, which augurs well for the uptrend to continue.
With the intermediate technical set-up looking positive, we believe the stock has the potential to move higher and take out its previous intermediate highs in the coming weeks and therefore recommend a buy between the Rs 372-380 levels. The current market price is Rs 376. Stop loss is at Rs 354 while targets are at Rs 440.
Buy
Info Edge India (Naukri)
After correcting from a high of Rs 7,465 touched in October 2021, Info Edge found support at Rs 5,870 levels in late October 2021. These levels also corresponded to the 20-week SMA, thereby making it a strong support.
Last Friday, the stock broke out of a recent trading range on the back of above average volumes. With the momentum readings like the 14-day RSI in rising mode and the intermediate technical set-up looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 6500-6550 levels. CMP is 6532. Stop loss is at 6320 while targets are at 7050.
Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities.
In the process, the Nifty has corrected and broken its recent supports, implying the short-term bias is weak. The Nifty is likely to drift down further towards the next major supports of 17,905-17,798 in the very near term. Any pullback rallies could find resistance at 18,133.
The below picks are for the next 15-26 trading sessions
Buy
Chambal Fertilisers & Chemicals
Chambal Fertilisers & Chemicals has shown relative strength this week. While the Nifty index has lost 0.77 per cent, Chambal Fertilisers has gained a healthy 8.89 per cent. In the process, the stock has also broken out of its recent trading range on the back of healthy volumes.
Technical indicators are giving positive signals as the stock trades above the 20 and 50-day SMAs. Daily momentum indicators like the 14-day RSI too have bounced back and are in rising mode now, which augurs well for the uptrend to continue.
With the intermediate technical set-up looking positive, we believe the stock has the potential to move higher and take out its previous intermediate highs in the coming weeks and therefore recommend a buy between the Rs 372-380 levels. The current market price is Rs 376. Stop loss is at Rs 354 while targets are at Rs 440.
Buy
Info Edge India (Naukri)
After correcting from a high of Rs 7,465 touched in October 2021, Info Edge found support at Rs 5,870 levels in late October 2021. These levels also corresponded to the 20-week SMA, thereby making it a strong support.
Last Friday, the stock broke out of a recent trading range on the back of above average volumes. With the momentum readings like the 14-day RSI in rising mode and the intermediate technical set-up looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 6500-6550 levels. CMP is 6532. Stop loss is at 6320 while targets are at 7050.
Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities.
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