“The stock is expected to trade in the range for the next few months, hence it is advisable to book profits if it was bought earlier, whereas fresh entry in absence of any positive trigger should be avoided at current levels,” he says. Edited excerpts from a chat.
We saw Nifty and Nifty Bank throwing up contrasting pictures last week. Technically, how do you read this and what are the charts looking like for both indices this week?Nifty has been trading in an uptrend with formations of higher highs and higher lows. The index has also managed to sustain above its 21DEMA since April 2023. Nifty is trading in an ascending channel pattern and bouncing strongly whenever it approaches the channel support. Bank Nifty, on the other hand, has been in a battle between bulls and bears near 44150 levels which was the previous life high levels. The index is currently trading below its 21DEMA which is the reason behind its underperformance as compared to Nifty. While Nifty is expected to test 18900-18950 levels in the coming days, Bank Nifty is expected to gain momentum only after a close above 44300 levels.
Nifty IT has started to outperform. How strong is the uptrend?
Nifty IT has witnessed some stability in the last few days, however, the large cap stocks like Infy and TCS have yet to gain momentum. The index is trading in a short-term consolidation with hurdles placed around 31000 and support at 26000. The index is expected to witness time correction for the next few weeks with a possibility of midcap IT stocks showing some traction.
Realty index was the biggest sectoral winner in the week with many stocks at a 52-week high level. Do you see signs of the rally being overheated?
Nifty Realty witnessed a retest of a 5-year breakout pattern on the weekly charts which was followed by consolidation. The index gave a fresh breakout out of this consolidation around 475 levels which pushed it up by 10%. The RSI has not yet entered the deep oversold zone which implies some more upside can be seen. However, the risk reward is not favourable for a fresh entry at the current levels, hence, a dip towards 480 which will be retest of consolidation breakout can be used to trigger fresh buying.
Brightcom Group was among the top gainers in the week. What are the targets now? Is the stock on its way to reclaim past peaks?
BCG witnessed a deep correction in 2022 which pulled the prices from Rs 100 to Rs 10. The stock witnessed a strong rebound since then and has been making strong weekly candles one after another. The stock had earlier witnessed a breakout from a descending trendline pattern. The stock has immediate resistance at Rs 31 which once conquered can push it towards Rs 38 levels. People who bought the stock earlier can keep trailing by using the previous week’s low as a stop loss.
Reliance Power shares have rallied around 23% in the last one week. What indications are you getting from the charts?
The stock has been trading in a range for the last 2 years with resistance and support placed at Rs 23 and Rs 9 levels, respectively. The stock is expected to trade in the range for the next few months, hence it is advisable to book profits if it was bought earlier, whereas fresh entry in absence of any positive trigger should be avoided at current levels.
Which are the top 3-4 ideas for the week ahead?
PCBL is witnessing a 5-year breakout on the weekly charts. The stock has witnessed strong volumes in the last few weeks which is a sign of accumulation ahead of the breakout. The stock is trading above its major moving averages which implies the trend is strong and once adx moves above 24 levels from 23 currently the pace is expected to pick up strongly
- BUY SHYAM METAL TG 380 SL 330
Shyam Metals has been consolidating in a range and is now showing signs of coming out of this phase. The stock is witnessing a breakout from a 12-month ascending channel pattern on back of strong volumes. The rsi has also witnessed a yearlong breakout which is likely to give strong push to the stock prices and once the rsi crosses 70 levels, the pace of upside is likely to pick up.
- BUY BAJAJ ELEC TG 1350 SL 1150
Bajaj Electricals has been in a 18-month consolidation and is showing early signs of a breakout. The stock had earlier witnessed a breakout from symmetrical triangle pattern on the weekly charts but failed to capitalize on the momentum. The stock is showing bollinger band contraction at this point in time which is likely to be followed by an expansion which can catapult the stock past 1350 levels.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
