Buy these two stocks for near-term gains while Nifty edges towards 17600-17700

September 16, 2021 8:58 AM

One may expect further upside towards 17600-17700 levels in the next few sessions. Immediate support is placed at 17420 levels.

Stock market todayThe upside breakout of range movement could be a cheering factor for bulls to make a comeback.

By Nagaraj Shetti

After showing a range-bound movement in the last 5-6 sessions, Nifty picked up upside momentum on Wednesday and showed upside breakout of the range and closed higher. After opening on a slightly positive note, the market shifted into a sustainable intraday upmove, which continued for the whole session. Minor intraday dips in between were used to go long for the day. A new all time high was made at 17532 levels and Nifty closed near the highs. 

A long bull candle was formed on the daily chart, which indicate an upside breakout of the narrow range movement of the last one week. This is positive indication and one may expect further upside in the short term. The positive chart pattern like higher tops and bottoms is intact and the recent swing low of 17254 could now be considered as a new higher bottom of the sequence. The immediate support of 10 day EMA is intact and has offered support for the Nifty during recent sideways range movement. Nifty on the weekly chart continued with uptrend after a pause of last week. This action signifies an uptrend strength of the market as per larger timeframe chart.

The upside breakout of range movement could be a cheering factor for bulls to make a comeback. One may expect further upside towards 17600-17700 levels in the next few sessions. Immediate support is placed at 17420 levels.

Buy NTPC Ltd- (CMP Rs 124.55)

After showing a larger range bound action in the last couple of months, the stock price has shifted into a sharp upside breakout of the range at Rs 120-122 levels on Wednesday and closed higher. The larger degree of positive sequence like higher tops and bottoms is intact on the weekly chart, which indicate medium term uptrend for the stock price. Volume has expanded during upside breakout and weekly 14 period RSI shows positive indication.

Buying can be initiated in NTPC at CMP (124.55), add more on dips down to Rs 119, wait for the upside target of Rs 138 in the next 3-4 weeks. Place a stoploss of Rs 115.

Buy Quess Corp Ltd- (CMP Rs 901.40) 

The stock price as per long term charts was moving in a range bound action over the last few weeks, before showing upside bounce in this week. The current chart pattern indicate an attempt of upside breakout of the crucial upside resistance around Rs 915-920 levels. Hence, a sustainable move above this area could open a sharp positive impact on the stock price ahead. The weekly DMI/ADX pattern indicate further strengthening of upside momentum for the stock price ahead.

Buying can be initiated in Quess Corp at CMP (901.40), add more on dips down to Rs 870, wait for the upside target of Rs 1010 in the next 3-4 weeks. Place a stoploss of Rs 845.

(Nagaraj Shetti is a Technical Research Analyst at HDFC securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)

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