By Subash Gangadharan
On the daily chart, we observe that Nifty remains in a short term uptrend. The Nifty is however near the previous high of 18,778, which could act as a resistance in the near term. We expect the Nifty to continue its upward journey. Short term sell offs are however not ruled out given that the Nifty is near some resistances. Crucial supports to watch for a short term trend reversal are at 18,555.
Stock recommendations for the next 15-26 trading sessions
Buy Kalyan Jewellers
Kalyan Jewellers is in a healthy uptrend after recently touching a low of 100.95 in April 2023. This week, the stock has broken out of its recent trading range on the back of healthy volumes. The stock also trades above the 20 and 50 day SMA and momentum readings like the 14-week RSI are in rising mode and not overbought.
With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 111-114 levels. CMP is 112.9. Stop loss is at 106 while target is at 125.
Buy Godrej Agrovet
Godrej Agrovet has corrected from an intermediate high of 593 touched in April 2022. The stock recently found support at the 390 levels which also roughly coincides with the previous intermediate lows of the stock, indicating it is a strong support. The stock has since then been gradually climbing higher and making higher tops and higher bottoms over the last few weeks. On Tuesday, stock broke out of a trading range on the back of above average volumes. The stock therefore looks set to continue its uptrend.
Technical indicators are giving positive signals as the stock is trading above the 20 day SMA. And weekly momentum readings like the 14-week RSI are in rising mode and not overbought. With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy. Our entry levels are between 448 and 452. CMP is 450.5. Stop loss is at 425 and upside targets are at 490.
(Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. Views expressed are author’s own. Please consult your financial advisor before investing.)