By Subash Gangadharan
The daily timeframe indicates that Nifty is now stuck in a range between the 24900-25235 levels for the last one week. A close below this range could see the Nifty moving down towards the 20-week SMA at 24663.
The momentum readings like the 14-day RSI are in decline mode which increases the probability of a downside breakout. Stock-specific action is however likely to continue as the broad market indices like the Mid Cap and Small Cap indices are still showing strength.
Buy Action Construction (1421.95): | Target Rs. 1550 | Stop-loss Rs 1330
Action Construction has been showing relative strength this week. The stock has gained 5.81% this week while the Nifty has shed 0.02%.
In the process, the stock has broken out of its recent trading range. Recently, there was also a positive MA crossover as the 20-day SMA moved above the 50-day SMA.
The 14-day RSI too is in rising mode and not overbought, indicating that momentum is strong. With the overall pattern looking bullish, we expect more upsides in the coming sessions.
Buy VTL (489): | Target Rs. 530 | Stop-loss Rs 458
VTL is now in an uptrend after testing a low of 442 in early October 2024. A new uptrend was confirmed when the stock took out the previous swing highs this week.
In the process, the stock has closed above the 20-day and 50-day SMA. The momentum indicators like the 14-day RSI are in rising mode and at 56.48 are not overbought, which is encouraging and augurs well for the uptrend to continue.
Given the positive technical set-up, we expect the stock to move higher and continue its uptrend.
(Disclaimer: Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)