By Subash Gangadharan
Zooming into 15-minute chart, we see that Nifty opened with an upgap on Wednesday, but selling pressure soon emerged from the highs and curbed the gains for the day. The Nifty nevertheless remains in a short term uptrend as it has moved above the previous swing highs of 17429 and made higher bottoms over the last few weeks. The Nifty is however near strong resistances which coincide with a downward sloping trend line that has held down the highs of 2021 and 2022. The index needs to convincingly cross these resistances for the uptrend to continue which could take the Nifty towards the previous intermediate highs of 18096. Crucial support to watch for resumption of weakness is at 17434.
Siemens has shown relative strength this week. While the Nifty rose by 1.92% this week, Siemens has gained 5.23% over the same time period. In the process, the stock has broken out of a narrow range on the back of above average volumes. Technical indicators are giving positive signals as the stock has closed above the 20 and 50 day SMA. Momentum readings like the 14-day RSI too have bounced back from oversold levels and are in rising mode and not overbought, which implies potential for further upsides. We therefore expect the stock to move up further in the coming sessions. Recommend a buy between the 2880-2900 levels. CMP is 2890. Stop loss is at 2720 while target is at 3180.
Buy Eicher Motors
Eicher Motors has corrected from a high of 3782 touched in early October 2022. The stock recently found support around the 3377 levels which also coincides with the 50 day SMA. The stock subsequently rose and made higher bottoms in the last few sessions. In the process, the stock has broken out of a tight range. Momentum readings like the 14-day RSI too are in rising mode and not overbought, which is encouraging. With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks. Recommend a buy between the 3614-3620 levels. CMP is 3617. Stop loss is at 3500 while target is at 3750.
(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)