Buy these two stocks for as much as 10% upside in 4 weeks; Nifty looks set to move past 12,000 mark
October 15, 2020 9:03 AM
The formation of long lower shadow in the last 3-4 daily candle could be a signal emergence of buying interest from the immediate supports.
On the downside, supports are holding near 11650 levels, which shows that the bulls are inherently in control.
By Nagaraj Shetti
After showing a consolidation type of movement in the last couple of sessions, Nifty witnessed sharp intraday weakness and also an excellent upside recovery on Wednesday and finally closed the day higher by 36 points. We observed a formation of small positive candle with long lower shadow, which indicates a sharp intraday upside bounce, after a steep decline during the early trade on Wednesday. This market could be a cheering factor for bulls to make a comeback, after a short pause in the market. But, the overall market breadth continued with weak trend and broad market indices like mid and small cap segments have failed to show any reasonable upmove.
The uptrend of the last couple of weeks remains intact and Wednesday’s sharp upside bounce could be another evidence of strength of upside momentum. The whole chart pattern as per daily timeframe could be considered as an uptrend continuation and Nifty is expected to surpass above the 12K mark soon.
The formation of long lower shadow in the last 3-4 daily candle could be a signal emergence of buying interest from the immediate supports. The pattern of daily 14 period RSI signal that further upside momentum in the market could be picked up soon.
The near term uptrend status of Nifty continues to be positive. The market is likely to continue its upside momentum above 12K mark, after a pause of last two sessions. The near term upside target of 12250 remains intact and immediate support is now placed at 11825.
After showing a larger consolidation pattern, the stock price (ACC) has shifted into a sharp upside bounce, which continued from the last week, as per weekly timeframe chart. The stock price is making an attempt to witness upside breakout of the key overhead resistance of down sloping trend line at Rs 1565 levels. One may expect upside breakout of this hurdle soon. Volume is increasing along with the upmove in the stock price and weekly RSI shows positive indication.
Buying can be initiated in ACC at CMP (1551.50), add more on dips down to Rs 1490, wait for the upside target of Rs 1675 in the next 3-4 weeks. Place a stoploss of Rs 1450.
The stock price (SBI Cards) has been in an intermediate up trended move over the last few months, as the stock price moved up according to positive sequence of higher tops and bottoms. Recently, it made an attempt of sharp upside breakout of larger consolidation pattern as per weekly chart at Rs 860 levels. Volume pattern and RSI signal more upside could be in store for the near term.
Buying can be initiated in SBI CARDS at CMP (890.95), add more on dips down to Rs 855, wait for the upside target of Rs 980 in the next 3-5 weeks. Place a stoploss of Rs 825.
(Nagaraj Shetti is a Technical Research Analysts at HDFC Securities. The views expressed are the author’s own, please consult your investment advisor before investing.)