Buy Nuvoco, Railtel stocks for one month, charts show potential upside; Nifty trades above 20-day SMA | The Financial Express

Buy Nuvoco, Railtel stocks for one month, charts show potential upside; Nifty trades above 20-day SMA

On the daily chart, we observe that the NSE Nifty 50 index has bounced back smartly on Tuesday after respecting the recent lows of 17166.

Buy Nuvoco, Railtel stocks for one month, charts show potential upside; Nifty trades above 20-day SMA
Nuvoco has been rallying higher for the last few weeks after finding support at the 260 levels

By Subash Gangadharan

On the daily chart, we observe that the NSE Nifty 50 index has bounced back smartly on Tuesday after respecting the recent lows of 17166. In the process, the Nifty 50 has also closed above the 20 day SMA and the recent swing high of 17727, which is a sign of strength. The Nifty is now likely to attempt to take out the downward sloping trend line that has held down the highs of 2021 and 2022. A breakout above this trend line would confirm that the bulls are in control and lead to a continuation of the intermediate uptrend. The below picks are for the next 15-26 trading sessions.

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Buy Nuvoco

Nuvoco has been rallying higher for the last few weeks after finding support at the 260 levels. In the process, the stock has broken out of its recent trading range. Technical indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA and recently there was positive moving average crossover as the 20 day SMA moved above the 50 day SMA. Momentum readings like the 14-week RSI are in rising mode. 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 353-359 levels. CMP is 356.3. Stop loss is at 335 while target is at 386.

Also read: Will bulls manage to pull Nifty above 17850 or bears to make a comeback? 5 things to know before opening bell

Buy Railtel

Railtel has shown relative strength this week. While the Nifty index has gained 1.09% this week, Railtel has gained 4.35% over the same time period. Zooming into the daily chart, we can observe that the stock has made a double bottom around the 94 levels and broken out of the recent trading range on Tuesday on the back of above average volumes. The stock is now trading above the 20 day and 50 day SMA. And momentum readings like the 14-week RSI are in rising mode and not overbought, which implies potential for more upsides. 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 98-102 levels. CMP is 100.8. Stop loss is at 95 while target is at 113.

(Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. Views expressed are the author’s own.)

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