By Subash Gangadharan
On Daily chart, we observe that Nifty has bounced back smartly after finding support near the 200-day EMA. The index was finding resistance near the 20 day SMA but is now on the verge of moving above it. With the bias positive, we expect Nifty to test the 18000 levels in the near term. Traders need to focus on stock-specific action to make money. Crucial supports to watch for weakness are at 17744-17652.
Stocks to buy for next 15-26 trading sessions
Can Fin Homes: Buy
After witnessing an intermediate correction and finding support at the 452 levels, Can Fin Homes has been steadily climbing higher and making higher tops and higher bottoms. In the process, the stock has crossed its previous swing high of 569, thereby indicating a reversal of the recent downtrend. Technical indicators are giving positive signals as the stock trades above the 20 day and 50 day SMA.
Weekly momentum indicators like the 14-week RSI have bounced back from oversold levels and are in rising mode now. With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 585-595 levels. CMP is 590.6. Stop loss is at 530 while target is at 700.
Zomato has recently bounced back from the support of 44. The stock had previously found support around the same levels in August 2022. This indicates that the 44 levels is a strong support and is likely to hold for a while. On Wednesday, the stock has broken out of its recent 9-day trading range on the back of above average volumes.
Momentum indicators like the 14-day RSI too are climbing higher and are not yet overbought, implying potential for more upsides. With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 52-55 levels. CMP is 53.8. Stop loss is at 48 while target is at 63.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)