Nifty outlook positive, resistance at 19300; buy these two stocks to pocket short-term gains | The Financial Express

Nifty outlook positive, resistance at 19300; buy these two stocks to pocket short-term gains

On the weekly scale, Nifty made a Bullish candlestick which points out positive momentum in the near term.

Nifty outlook positive, resistance at 19300; buy these two stocks to pocket short-term gains
Varun Beverages is outperforming the benchmark index from the last couple of weeks on a relative basis and trading at its all-time high.

By Vishal Wagh

The Nifty index opened flat to negative and traded negative in the first half of the session. It witnessed some recovery from the lower levels in the second half of the session and closed with losses of around 116 points. Profit booking was seen in the index at a higher zone. An important level to watch on the upside is 18930. Sustain above the same we might head towards 19300 levels.

It formed a bearish candle on a daily scale. On an hourly chart, the Nifty has been moving higher highs and higher lows formation confirming the bullish trend. On the weekly scale, Nifty made a Bullish candlestick which points out positive momentum in the near term.

In addition, the Technical indicator Ichimoku cloud suggests that the price is trading above the conversion line and base line which, now acting as a support for the market. The momentum indicator Relative Strength Index RSI (14) has also sustained above 65 which indicates bullish strength. The upside resistance is placed near 18950 & 19300 levels. Support exists at 18500 to 18380 levels.

Also read: Nifty earnings growth to accelerate to 15% in FY24; multiples in fair zone, likely to sustain

Varun Beverages (VBL) Outlook

BUY | CMP: Rs 1318.60, Target Rs 1420/1450, Stop Loss Rs. 1250, Return 7.68%

The stock is outperforming the benchmark index from the last couple of weeks on a relative basis and trading at its all-time high. The price has been rising continuously with Higher Highs and Higher Lows formation and from the March 2022 price did not form any bearish reversal candlesticks to date confirming bullish strength in VBL.

On a weekly basis, the price has given a breakout of the Cup & Handle Pattern with spurt volume indicating a continued bullish trend. The price has settled above the upper Bollinger Band after taken support of the middle band confirming bullish strength. The RSI (14) has crossed the 70 mark and at the same time MACD indicator suggested a positive crossover which also signals strength in momentum on the higher side.

Hence, based on the above technical structure one can initiate a long position in VBL at CMP 1318.60 or a fall in the price till 1298 levels can be used as buying opportunity for the upside target of 1420/1450. However, the bullish view will be negated if VBL closes below the support level of 1250.

Dabur India Outlook

BUY | CMP: Rs. 591.15, Target Rs 633/648, Stop Loss Rs 570, Return 7.07%

On a weekly time frame, DABUR has witnessed a breakout of Downward channel and again retested the upper band of the channel. The price has shifted just above the Ichimoku Cloud after retest which point out bullish set up in the counter.
From the last two weeks, the price is continuously showing strength and consolidating just above the upper trend line of channel suggesting positive bias. The CNX FMCG is outperforming benchmark indices, which will add more strength to the stock.

On a daily chart, the price has given a breakout of Inverse Head & Shoulder pattern with the spurt volume, indicates continued bullish trend. Currently, the price is trading above the 50 Exponential Moving Averages and the daily RSI (14) has also sustained above 70 levels, confirming bullish strength. On the momentum front, the MACD histogram is hovering in the positive territory with a bullish crossover which also signals strength in momentum on the higher side.

Hence, based on the above technical structure one can initiate a long position in DABUR at CMP 591.15 or a fall in the price till 584 levels can be used as buying opportunity for the upside target of 633/648. However, the bullish view will be negated if VBL closes below the support level of 570.

(By Vishal Wagh, Research Head, Bonanza Portfolio. Views are author’s own.)

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First published on: 05-12-2022 at 10:03 IST