Nifty must hold above 17300 for an upmove towards 17500; buy these two stocks to pocket gains | The Financial Express

Nifty must hold above 17300 for an upmove towards 17500; buy these two stocks to pocket gains

Nifty has formed a Bullish candle on a weekly scale and negated its lower highs – lower lows of the last two weeks. Now, it has to hold above 17300 zones for an up move towards 17442 and 17500 zones.

Nifty must hold above 17300 for an upmove towards 17500; buy these two stocks to pocket gains
This week will be eventful as we will have a lot of macro data and quarterly results which will decide the fate of the market.

By Rahul Shah

Equity bench Sensex recovered the previous week’s losses and climbed up over 700 points on account of rally in the global markets, strong September auto monthly sales data, impressive quarterly business update by corporates and better-than-expected GST collection (up 26% on-year to Rs1.47 lakh crore), boosted sentiment. For the week, Sensex climbed up 764 points or 1.30 percent to close at 58,191.29, while the Nifty advance 220 points or 1.30 percent to end at 17,315. There was action shifted mid cap and small cap counters and surged Nifty small and Mid-cap Index over 2% each US Dollar Index from high and on the possibility of banning Russian aluminum, nickel and copper from being traded and stored in its system. Tech stocks witnessed fresh buying ahead of quarterly results to be announced this week.

Banking and NBFC stocks were volatile as concerns of 10-year G-Sec Yield surged to a 3-month high at 7.51%. This week will be important not only in the domestic market but also in the global markets too as quarterly results, US inflation data and US Fed minutes of meeting will be in focus. Minutes from the Fed’s September meeting will give clues into the central bank’s tolerance for economic pain. Global markets fell sharply on Friday and tech-heavy Nasdaq 100 Index plunged 4%, almost entirely wiping out the week’s earlier gains after solid September jobs report fueled concerns that the Federal Reserve would continue to be aggressive with rate hikes.

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Moreover, both US 10-Year and 2-year Yield recovered from earlier low, and US Dollar Index bounced to nearly earlier level at 112 on the expectation of US Fed to aggressive hike interest rate after announcing better-than-expected US non-farm payroll data. On the domestic front, Brent crude spiked to a 1-month high at nearly $100/bbl and a record high USDINR of above 82 are major concerns in the market. Expect higher intra-day volatility in the market ahead of quarterly results and weakness in the global markets. Tech majors  TCS (Monday), HCL Tech, Wipro (Wednesday) Infosys (Thursday) will announce Q2 results this week along with CPI and IIP data to be announced on Wednesday.

Globally, the third-quarter earnings season kicks off with quarterly reports in the US – big banks Morgan Stanley, Wells Fargo & Co, JPMorgan Chase & Co, and Citigroup Inc on Friday. This week will be eventful as we will have a lot of macro data and quarterly results which will decide the fate of the market. Nifty has formed a Bullish candle on a weekly scale and negated its lower highs – lower lows of the last two weeks. Now, it has to hold above 17300 zones for an up move towards 17442 and 17500 zones whereas supports can be seen at 17167 and 17071 zones.

India Cement
CMP: Rs 274, SL: Rs 264, Target: Rs 300

India Cements has given a consolidation breakout on the daily scale and it has formed a strong bullish candle pattern which indicates strong buying interest in the counter. The stock is in uptrend on the weekly scale and it is respecting the 20 week average which has bullish implications. RSI oscillator is also positively placed on daily and weekly charts. Considering the current chart structure, we advise traders to buy the stock for up move towards Rs 300 with a stop loss of Rs 264.

Also Read: Nifty looks to hit new peak by Diwali 2022, despite market volatility; check what do technical charts say

Tata Chemicals
CMP: Rs 1181, SL: Rs 1140: Target: Rs 1240

Tata Chemicals has given a breakout of the falling supply trend line on the daily scale and has formed a bullish candle which indicates buying interest in the counter. RSI oscillator is also positively placed on daily and weekly charts. Considering the current chart structure, we advise traders to buy the stock for up move towards Rs 1280 with a stop loss of Rs 1140.

(Rahul Shah is the Senior Vice President, Group Advisory Leader-PCG, Broking & Distribution, Motilal Oswal Financial Services. The views expressed are the author’s own. Please consult your financial advisor before investing)

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First published on: 10-10-2022 at 10:43 IST