By Subash Gangadharan
On the Daily chart, we observe that the NSE Nifty 50 index is in a short term uptrend after breaking out of the downward sloping trend line that has held down the highs of 2021 and 2022. While this is healthy for the intermediate uptrend to continue, we would not be surprised if the markets correct in the near term. On Wednesday, the Nifty did in fact correct from its recent highs of 18088, thereby making a double top pattern on the intra day 15 min chart. Further downsides are likely once the immediate support of 17946 is broken. Downside targets in this scenario are at 17771. The bulls would gain control only if the recent highs of 18092 are taken out. The below picks are for the next 15-26 trading sessions.
Mahindra Logistics has corrected from a high of 821 touched in August 2022. The stock recently found support around the 391 levels. The stock has since then bounced back and reversed its recent downtrend. The reversal was confirmed when the stock took out the recent swing high of 520 on the back of above average volumes.
Technical indicators are giving positive signals as the stock has closed above the 20 day and 50 day SMA. Momentum readings like the 14-week RSI are in rising mode and not overbought.
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 533-555 levels. CMP is 543.7. Stop loss is at 488 while target is at 650.
Rallis has shown relative strength this week. While the Nifty rose by 0.94% this week, Rallis has gained 6.68% over the same time period. In the process, the stock has broken out of a narrow range on the back of healthy volumes. Technical indicators are giving positive signals as the stock has closed above the 20 day and 50 day SMA. Momentum readings like the 14-week RSI too 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 237-243 levels. CMP is 240.3. Stop loss is at 227 while target is at 266.
(Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. Views expressed are the author’s own.)