Nifty’s upward march to continue, charts hint these two stocks could follow index’s northward move

April 22, 2020 5:11 PM

The short term trend of Nifty is positive, one may expect further upside in the coming sessions.

The short term trend of Nifty is positive, one may expect further upside in the coming sessions.
  • By Nagaraj Shetti

After showing sharp weakness on Tuesday, Nifty witnessed an excellent bounce on Wednesday and closed the day higher by 2.29%. We observe formation of long bull candle on Wednesday, which signals a buy on dips opportunity. The positive sequence of higher tops and bottom continued and Tuesday’s low of 8909 could now be considered as a new higher bottom of the sequence. Hence, one may expect further upside in the coming sessions. Nifty is currently moving in a rising wedge type formation and is currently moving up from near the lower end of wedge at 8850 levels.

This rising wedge formation, after a sharp down trend of March and April 2020 could hint at negative pattern implication in the near term. But this negative implication could only activate on a move decline 8800-8750 levels.

Conclusion:

The short term trend of Nifty is positive, one may expect further upside in the coming sessions. Upside levels to be watched at 9350-9400 levels in the next few sessions and immediate support is placed at 9050.

TORRENT PHARMACEUTICALS LTD: BUY- (CMP Rs 2452.45) 

After showing consolidation type candle pattern in the previous few sessions, the stock price witnessed an upside bounce on Wednesday. Currently makes an attempt of upside breakout of the consolidation at 2430-2450. The recent swing low of Rs 2227 (17th April) could now be considered as a new higher bottom of the sequence. Hence one may expect further upside in the near term.

Buying can be initiated at CMP (Rs 2452), add more on dips down to Rs 2355, wait for the upside target of Rs 2675 in the next 3-4 weeks. Place a stoploss of Rs 2275.

Bharat Electronics Ltd (BEL) – (CMP Rs 76.70) 

After moving into range movement with positive bias in the last few sessions, the stock price currently makes an attempt of upside breakout of the range at Rs 77-78 levels. A sustainable move above 78 levels could mean a sharp upside breakout in the stock price ahead and one may expect further upside in the near term. The daily and weekly RSI shows positive indication.

One may look to buy BEL at CMP (Rs 76.70), buy on dips around Rs 73.50 and wait for the upside target of Rs 83 in the next 3-4 weeks. Place a stoploss of Rs 72.50.

( Nagaraj Shetti is a Technical Analyst at HDFC Securities. The views expressed are the author’s own. Financial Express Online does not bear responsibility for the investment advice, please consult your investment adviser before investing)

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