MSCI rejig: Time to buy Alkem, BSE, Voltas now or wait? Key levels here

Technical charts indicate that the 5 newly added stocks to the MSCI index are favourably placed and could soar up to 19% in forthcoming trading sessions.

The MSCI in its latest rebalancing has added 2 new Indian stocks to its MSCI Equity Indexes, while upgrading 3 others to mid-cap. Overall, the MSCI Global Standard Indexes added 5 Indian stocks - Alkem Laboratories, Oberoi Realty, BSE, Kalyan Jewellers India and Voltas.

 

The latter 3 were upgraded from small-cap segment to mid-cap segment of the MSCI Emerging Markets Index. Meanwhile, Oberoi Realty and Alkem Laboratories were freshly added to the index. 

 

According to Nuvama Alternative & Quantitative Research these 5 stocks collectively could see inflows of up to $1,200 million, with Voltas alone likely to garner one-fourth share. 

 

Against this backdrop, here's how these 5 stocks are likely to trend going ahead:

 

Alkem Labs

Current Price: Rs 5,771

Upside Potential: 9.2%

Support: Rs 5,720; Rs 5,380

Resistance: Rs 5,970; Rs 6,100

 

Alkem Labs has been making lower highs and lower lows on the daily scale since the last two months. At present, the stock is seen trading below its short-term moving averages - the 20- and the 50-DMA (Daily Moving Average). At the same time, the stock is seen seeking support around its 100-DMA at Rs 5,720. CLICK HERE FOR THE CHART

 

As such, as long as the 100-DMA support holds, Alkem Labs stock can attempt a bounce back to Rs 6,300 levels; with interim resistance likely around Rs 5,970 and Rs 6,100 levels. On the other hand, in case, the 100-DMA fails to hold the stock can slide towards the 200-DMA at Rs 5,380. 

 

BSE

Current Price: Rs 4,835

Upside Potential: 19.3%

Support: Rs 4,600; Rs 4,425

Resistance: Rs 4,975; Rs 5,310

 

Despite the overall volatility in the equity market, BSE stock has witnessed a strong 69 per cent rally since mid-September. The stock continues to trade on a buoyant note at record high levels. The long-term chart suggests that the overall bias for BSE is likely to remain upbeat as long as the stock trades above Rs 4,600 levels.  CLICK HERE FOR THE CHART

 

On the upside, BSE can potentially surge to Rs 5,770 levels; with interim resistance seen at Rs 4,975 and Rs 5,310 levels. On the flip side, in case the stock violated the Rs 4,600 support, it could seek support around Rs 4,425 levels.

 

Kalyan Jewellers

Current Price: Rs 710

Upside Potential: 10.6%

Support: Rs 695; Rs 624

Resistance: Rs 730

 

Kalyan Jewellers seems to be bouncing back after testing support around its 20-WMA (Weekly Moving Average) in recent trading sessions. The 20-WMA stands at Rs 624 and is likely to act as trigger for the existing positive trend. Near support for the stock exists at Rs 695. CLICK HERE FOR THE CHART

 

On the upside, the stock can potentially bounce back to its recent highs around Rs 785; with interim resistance likely at Rs 730. 

 

Oberoi Realty

Current Price: Rs 2,065

Upside Potential: 8.2%

Support: Rs 2,055; Rs 2,025; Rs 1,970

Resistance: Rs 2,105; Rs 2,160

 

Oberoi Realty has given a fresh breakout on the daily scale in Thursday's trading session. The near-term bias is likely to remain upbeat as long as the stock holds above Rs 2,055 - Rs 2,025 support zone; while the overall bias shall remain positive as long as the stock trades above Rs 1,970. CLICK HERE FOR THE CHART

 

On the upside, the stock can jump to Rs 2,235; with interim resistance likely around Rs 2,105 and Rs 2,160 levels.

 

Voltas

Current Price: Rs 1,740

Upside Potential: 5.8%

Support: Rs 1,660

Resistance: Rs 1,765; Rs 1,810

 

Voltas has bounced back after testing support around its 100-DMA. The stock, at present, is seen facing resistance around its 20-DMA at Rs 1,765; above which next resistance stands at Rs 1,810 and Rs 1,840. The stock is likely to trade in the broad range of Rs 1,840 - Rs 1,660 until there is a clear directional move on either side. CLICK HERE FOR THE CHART