By Subash Gangadharan
On the daily chart, we observe that Nifty has taken a breather in the last two sessions after recently bouncing back from the 20-day SMA. We, therefore, expect the uptrend to continue, despite selling seen in the last two sessions. Immediate upside targets for Nifty are at 18459 once the resistance of 18420 is taken out. Moreover, as the longer time frame indicates that the Nifty remains in an uptrend, we believe that our immediate targets of 18459 are also likely to be taken out in the coming sessions. Crucial supports to watch for weakness are at 18250.
The below picks are for the next 14-22 trading sessions
Wipro: Buy – Target Price: Rs 430 – SL: Rs 380
Wipro has been making higher bottoms and higher tops over the last few weeks after touching a low of Rs 352 in April 2023. In the process, the stock has crossed its previous swing high of 392 touched in May 2023. Technical indicators too are giving positive signals as the stock is trading above the 20-day and 50-day SMA. Momentum readings like the 14-week RSI too are in rising mode and not overbought, which is encouraging.
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 Rs 397-401 levels. CMP is Rs 399.4. The stop loss is at Rs 380 while the target is at Rs 430.
Avanti Feeds: Buy – Target Price: Rs 410 – SL: Rs 363
Avanti Feeds has corrected from an intermediate high of Rs 528 tested in September 2022 and found support at the Rs 321 level in March 2023, which is roughly close to the previous intermediate lows of the stock. This indicates that these are strong support levels. The stock has since then bounced back and made higher bottoms. This week, the stock has broken out of the recent trading range on the back of above-average volumes.
Weekly momentum indicators like the 14-week RSI have bounced back and crossed their 9-week EMA, which is a positive signal. 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 Rs 376 and Rs 381 levels. CMP is Rs 378.95. The stop loss is at Rs 363 while the target is at Rs 410.
(Subash Gangadharan is Senior Technical and Derivative Analyst at HDFC Securities. Views expressed are author’s own.)