The ‘RSI-Smoothened’ is moving northwards after entering the bullish territory above 70 and adding to this, the ‘ADX (14)’ is becoming stronger as we can see its value rising well above the 25 mark. Generally, when we see these conditions together, it provides impetus to the rally. Hence, any dip towards 12,600 – 12,450 should be used as a buying opportunity.
On the upside, the next milestone of 13,000 is likely to be achieved very soon; in fact, we do not rule out the possibility of reaching 13,100 – 13,200 in the current week itself.
Traders are advised not to expect any meaningful correction in the near future and hence, do not venture into taking contradictory bets in such strong Bull Run. We are sounding extremely optimistic because almost all major sectors are contributing to this surge and hence, can be considered a robust one.
The broader market has also started to give some mesmerizing moves and mind you, this is just a beginning of the mega Bull Run. So fasten your seat belts and gear up to take off post Diwali as well.
NSE Scrip Code – LICHSGFIN
View – Bullish
Last Close – Rs 314.20
Justification – One of the traders’ favorite counter has not participated much in the overall rally in the last few months. However, recently we witnessed some encouraging signs as the stock prices finally managed to come out of its long consolidation phase. During the week, it confirmed a price volume breakout from the ‘Multiple Resistance’ zone along with reasonable volumes. Importantly, stock prices have managed to spend more than 15 consecutive trading sessions above the ‘200-day SMA’ for the first time after July 2019, which is extremely positive development for this counter. We recommend going long for a target of Rs 342 in the coming weeks. The stop loss can be placed at Rs 298.
NSE Scrip Code – ICICI LOMBARD
View – Bullish
Last Close – Rs 1,297.30
Justification – This stock has been the recent entrant to the F&O space; but after this, we did not see any action in the stock for a while now. It just rested around the ‘200-day SMA’ for nearly two months, because of lack of participation from the market participants. But on Friday, we finally witnessed a notable price action in the upward direction. This up move is backed by more than average daily volumes and hence, we expect the stock to be back in action in the coming days. Traders are advised to buy for a target of Rs 1,382 in the coming days. The stop loss can be placed at Rs 1,247.
NSE Scrip Code – DECCAN CEMENT
View – Bullish
Last Close – Rs 341.75
Justification – The entire ‘Cement’ space is on a roll since the last couple of months. All larger names have given a mesmerizing move in this period and now some of the smaller stocks are gaining traction. Last week, ‘Deccan Cement’ confirmed a good price-volume breakout on daily chart on Friday. The kind of extraordinary volume activity we have witnessed in the up move in recent months indicates some bigger moves to unfold and this probable rally seems to have just begun now. Hence, one can look to go long for a target of Rs 380 in the coming days. The stop loss can be placed at Rs 324.
The analyst may have positions in one or more stocks. Views are personal.
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