Upside target implications are at 17000. However, we remain open to the possibility of the Nifty correcting towards the 16286 levels in the coming weeks.
By Subash Gangadharan
Nifty moved up further on Wednesday to touch a new life high. Though selling pressure emerged in the afternoon session and pulled the index lower, the short term trend of the Nifty remains up and traders will need to watch if the Nifty can hold above the immediate support of 16608 for a retest of the life highs; else we could see a short term correction towards the next support of 16592.
- Nifty above 17800 may head to 18300, Bank Nifty to hit 38800; Airtel, HCL Tech, Dabur look strong on charts
- Buy these two stocks for gains; Nifty resistance at 17800–17850, Bank Nifty likely to outperform
- F&O expiry outlook 23 September: Nifty support at 17500, Bank Nifty to continue to rally above 38000
On the daily chart, the Nifty continues to hold above a rising trend line that has held the important lows of the last few months. This implies that the index remains in an intermediate uptrend. The index also continues to trade above the 20 and 50 day SMA, which gives further evidence of an uptrend.
And recently, Nifty has broken out of the 15451-15962 trading range, which is an encouraging signal for the uptrend to continue. Upside target implications are at 17000. However, we remain open to the possibility of the Nifty correcting towards the 16286 levels in the coming weeks. We recommend buying on any dips.
Stock picks for next 15-26 trading sessions
Buy Balrampur Chini
Balrampur Chini has shown relative strength this week. While the Nifty index has gained marginally, this stock has surged higher by 3.88%. In the process, the stock has also broken out of its recent trading range on the back of above average volumes.
Technical indicators are giving positive signals as the stock trades above an upward sloping 20 week and 50 week SMA. Daily momentum indicators like the 14-day RSI too have bounced back and are in rising mode now, which augurs well for the uptrend to continue.
With the intermediate technical setup looking positive, we believe the stock has the potential to move higher to new life highs in the coming weeks and therefore recommend a buy between the 369-373 levels. CMP is 371. Stop loss is at 347 while targets are at 420.
Buy Adani Ports
After correcting from a life high of 901 touched in early June 2021, Adani Ports found support at the 638 levels in mid June 2021. The stock has then consolidated in a range between the 638-762 levels for the last two months.
On Wednesday, the stock closed above the 20 and 50 day SMA on the back of above average volumes. Daily momentum indicators like the 14-day RSI too have bounced back from oversold levels and are in rising mode now.
With the intermediate and long term 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 717-725 levels. CMP is 721.1. Stop loss is at 690 while targets are at 785.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. The views expressed are the author’s own. Please consult your financial advisor before investing.)