On the daily chart, the Nifty remains in uptrend and continues to trade above the 20 day SMA. With the Nifty now breaking out of the 14862-15111 range, upside targets for the Nifty are at the recent high of 15273. Crucial support to watch for emergence of weakness is at 15100.
The below picks are for the next 15-26 trading sessions
Buy Larsen & Toubro Infotech (LTI)
After correcting from a high of 4483 touched in January 2021, LTI found support around the 3570 levels in February 2021. These levels also coincide with the 20 week SMA, making it a strong support.
The stock has since then rebounded and gradually made higher tops and higher bottoms over the last two weeks. On Wednesday, the stock broke out of its recent swing highs of 4015 on the back of huge volumes, indicating that the uptrend looks set to continue.
indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA and short term momentum indicators like the 14-day RSI are in rising mode and not overbought.
With the intermediate and long term technical setups too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 4080-4142 levels. CMP is 4138.5. Stop loss is at 3900 while targets are at 4650.
Eicher Motors has recently corrected from a high of 3037 tested in January 2021. The stock found support at the 2450 levels before bouncing back in the last two weeks and consolidating in a range.
On Wednesday, the stock broke out of a narrow range on the back of above average volumes. This augurs well for the uptrend to continue.
indicators are giving positive signals as the stock trades above the 20-day SMA. Short term momentum readings like the 14-day RSI too are in rising mode and not overbought.
With the short term and intermediate technical setups looking attractive, we expect the stock to gradually move higher in the coming weeks. We therefore recommend a Buy between the 2650-2680 levels. CMP is 2673.9. Stop loss is at 2570 while targets are at 2900.
(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.)