Bulls in control
On June 11, markets opened on a positive note and after a brief fall, resumed to climb higher. The index ended with healthy gains for the third consecutive session.
The rise seen in the last three sessions has ensured that the Nifty support of 11,829 is still intact. These levels are now the short-term trend reversal levels for the index. Further upsides are likely once the immediate resistance of 12,001 is taken out. Immediate upside target for the Nifty in this scenario is at the current life highs of 12,103.
Crucial supports to watch for resumption of weakness is at 11,904-11,871.
Buy Reliance Industries (Rs 1,329.15)
Target: Rs 1,375
Stop Loss: Rs 1,300
RIL has been consistently making higher tops and higher bottoms after touching a low of Rs 1,227 in May 2019. In the process, the stock has reversed its recent downtrend and entered into a new short term uptrend.
This week, the stock has bounced back from the lower end of a three-week consolidation range between Rs 1,304 - Rs 1,375. With the short-term momentum readings like the 14-day RSI (relative strength index) in the positive mode and not overbought, we expect further upsides in the near term.
We recommend buying the stock between Rs 1,300 and Rs 1,330 for a target of Rs 1,375. Stop loss is at Rs 1,300.
Buy Piramal Enterprises Ltd. (Rs 2,175.95)
Target: Rs 2,330
Stop Loss: Rs 2,075
Piramal Enterprises has bounced back smartly from the lows of Rs 2,021, thereby making a double-bottom pattern on the daily charts. The rise seen in the last three sessions has been accompanied with healthy volumes and rising momentum readings, which is a positive signal.
The weekly and monthly technical setups, too, are looking encouraging, suggesting that the stock is looking attractive on larger timeframes and could therefore make a bigger upmove in the near term.
So, we recommend buying the stock between Rs 2,120 and Rs 2,176 for a target of Rs 2,330. Stop loss is at Rs 2,075.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.