Nifty may hit new all-time high if it holds above 18450; Buy these 2 stocks for near-term gains | The Financial Express

Nifty may hit new all-time high if it holds above 18450; Buy these 2 stocks for near-term gains

The short-term trend of Nifty remains up, but the market is showing lack of strength to sustain the highs of around 18450-18500 levels

Nifty may hit new all-time high if it holds above 18450; Buy these 2 stocks for near-term gains
A small positive candle was formed on the daily chart of Nifty 50 with minor upper and lower shadow. Image: Pixabay

By Nagaraj Shetti

After showing an intraday upside recovery from the lows on Tuesday, Nifty shifted into range bound action with volatility on Wednesday and closed the day higher by 06 points. After opening with a flat note, the market tried to move up from the lows in the early part of the session. It failed to sustain the highs of 18440 and slipped into minor weakness in the mid part. Intraday buying was observed from the lows towards the end. A small positive candle was formed on the daily chart with minor upper and lower shadow. Technically, this formation indicates a spinning top type negative candle pattern at the highs. But, having shifted into a range movement over the last few sessions, the chances of sharp negative pattern implication could be less. The near-term uptrend status of the market remains intact and the Nifty closed above the immediate resistance of 18350 levels in the last couple of sessions.

Conclusion: The short-term trend of Nifty remains up, but the market is showing lack of strength to sustain the highs of around 18450-18500 levels. A decisive move above this area could pull Nifty towards a new all-time high of 18650-18700 levels in the near term. Immediate support is placed at 18300.

Stock Picks:

Buy ITI Ltd

After showing downward correction in the last 7-8 sessions, the stock price has shifted into a sustainable upside bounce from the lows on Wednesday. After the sharp upside breakout of the down sloping trend line on 1st of Nov, the recent downward correction has not nullified the upside breakout pattern in the stock price. We observe a formation of higher bottom at Rs 108, which suggests more upside in the short term. Buying can be initiated in ITI LTD at CMP (111.10), add more on dips down to Rs 107, wait for the upside targets of Rs 120 and Rs 128 in the next 3-5 weeks. Place a stop loss of Rs 104.

Buy Ruchira Papers Ltd

The weekly timeframe chart of this paper stock Ruchira Papers Ltd indicates an intermediate uptrend on the weekly chart over the last few months. The stock price has moved up as per the positive sequence like higher tops and bottoms over the period of time. After showing a range bound action in the last one month, the stock price has witnessed a decisive up move in this week and is currently in an attempt of upside breakout of the consolidation at Rs 137-138 levels. We also observe an attempt of an upside breakout of the triangle pattern at Rs 129-130 levels.This is a positive indication. Volume has started to expand during upside breakout and weekly RSI has moved above 60 levels. Hence, one may expect continuation of upside momentum in the near term.

Buying can be initiated in RUCHIRA at CMP (136.95), add more on dips down to Rs 131, wait for the upside targets of Rs 148 and Rs 157 in the next 3-4 weeks. Place a stoploss of Rs 127.

(Nagaraj Shetti, Technical Research Analyst, HDFC Securities. Views expressed are the author’s own.)

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First published on: 17-11-2022 at 02:01:44 pm
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