Hitachi Energy, KFin, Jubilant Food flash bullish technical signs: Analyst

Stocks to buy today: Jatin Gedia of Teji Mandi Investment said Hitachi Energy, KFin Technologies, and Jubilant FoodWorks are flashing bullish technical signals.

Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.

 

Jatin Gedia - VP, technical research, Teji Mandi Investment Technologies Pvt Ltd

 

Nifty strategy 

 

Nifty has rallied more than 1,400 points in the last six trading sessions. Nifty is now trading near the crucial resistance zone of 23,880 - 24,000 which coincides with the 150 per cent and 161.8 per cent fibonacci extension levels of the previous wave. The hourly momentum indicator has triggered a negative crossover, indicating a loss of momentum. Since Nifty is approaching the crucial resistance zone of 23,880 - 24,000 some consolidation is likely between 23,700 - 24,000 over the next few trading sessions. The overall uptrend is still intact, so buying on dips should be the preferred approach rather than chasing momentum. In terms of levels, use dips toward 23,800 - 23,750 as a buying opportunity, placing a stop-loss at 23,650 for an upside target of 24,000 - 24,220. 

 

 

Bank Nifty strategy 

 

Bank Nifty seems to have taken a backseat in the current rally. It has rallied ~4 per cent as compared to the Nifty which has rallied ~7 per cent. The technical structure is positive, with a higher high higher low formation intact. It has faced resistance in the 56,000 - 56,200 multiple times in the last couple of months. Hence, it is crucial for the Bank Nifty to surpass the 56,000 - 56,200 zone for further upside. Gap formed in the zone 55,200 - 55,000 on 3rd November shall act as an immediate support zone for the near-term perspective. A move beyond 56,200 could trigger a rally towards 57,000 - 57,350. 

 

Stocks to buy today 

 

Buy Hitachi Energy India ₹28,765

 

Stop loss: ₹27,670, Target: ₹30,921

 

Hitachi Energy India Ltd stock formed an engulfing bull candlestick pattern at the 61.8% fibonacci retracement level (26894) of the 25420 - 29280 rally. Formation of a trend reversal pattern at support suggests resumption of the next leg of the upmove. Daily momentum indicator has  positive crossover which is a buy signal. 

 

Buy Kfin Technologies ₹896.15

 

Stop loss: ₹870, Target: ₹947 

 

Kfin Technologies stock has broken out of a five day consolidation with above average volume suggesting a genuine breakout. Positive crossover on the daily momentum indicator suggests a buy signal. 

 

Buy Jubilant FoodWorks ₹436.20

 

Stop loss: ₹425, Target: ₹455

 

Jubilant FoodWorks stock has broken out of an Inverted Head and shoulders pattern on the daily charts suggesting a short-term trend reversal. Breakout has been accompanied with highest volume of the last one month and a positive crossover on the momentum indicator suggests that positive momentum is likely to continue.