By Subash Gangadharan
On the daily chart, the Nifty continues to hold above a rising trend line that has held the important lows of the last few months. This implies that the index remains in an intermediate uptrend. The Nifty has also recently made higher bottoms at 14,416 and 14,591 and continues to trade above the 20 and 50 day SMA, which gives further evidence of an uptrend.
The recent breakout above the swing high of 15,044 indicates that the Nifty looks set to move higher towards the lifetime highs of 15,432 in the coming sessions. Our bullish bets are off if the Nifty moves below the lows of 14,826.
The below picks are for the next 15-26 trading sessions
After correcting from a high of 16830 touched in February 2021, Bosch found support around the 13225 levels in May 2021. These levels also roughly coincide with the 50 week SMA indicating that the stock has found healthy support. The stock has now been steadily rising for the last few weeks and making higher bottoms in the process. On Tuesday, the stock crossed the previous swing high of 14388, indicating that the bulls have an upper hand. This augurs well for the uptrend to continue.
Technical indicators are giving positive signals as the stock trades above the 20 and 50 day SMA. Short term momentum indicators such as the 14-day RSI too have bounced back from lower levels and are now in rising mode and not overbought.
With the intermediate and long term technical setups too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 14400-14800 levels. CMP is 14695. Stop-loss is at 13600 while targets are at 16900.
NIACL has recently corrected from a high of 197 tested in February 2021. The stock has found support around the 142 levels which also roughly coincides with a previous intermediate high. This indicates that the change of polarity principle is at work as prior resistances are now acting as supports.
On Wednesday, the stock has broken out of the 150-158 trading range on the back of above-average volumes. This augurs well for the uptrend to continue. Technical indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA. Daily momentum indicators like the 14-day RSI have bounced back from oversold levels and are in rising mode now.
With the intermediate and long term technical setups looking positive, we believe the stock has the potential to move higher in the coming weeks. Therefore, we recommend a Buy between the 163-167 levels. CMP is 165.45. Stop-loss is at 152 while targets are at 191.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. The views expressed are the author’s own. Please consult your financial advisor before investing.)