We will not be surprised to see it happening in the inaugural week of the new financial year. Thus, traders are repeatedly advised to remain on the positive side and do not think of going against ongoing momentum. In such markets, do not hesitate, rather use dips to participate and ride the tide.
As far as levels are concerned, immediate resistance is seen around 11,700 – 11,760 levels but as we opined, it’s a matter time we would see index hastening beyond these junctions. On the flipside, 11,570 followed by 11,450 are now likely to act as sheet anchor supports for the Nifty.
Further, the midcap index which has broken out from the multi-month congestion zone recently is gearing up to take off from the heron. Hence, do watch out potential candidates within this space, which may provide better trading as well as investment opportunities. We hope to have a spectacular financial year going ahead.
1. NSE Code – GRASIM
Last Close: Rs 857.95
Justification – Cement stocks were on a roll on Friday and this stock, too, after forming a base around 89-EMA for the last two weeks has broken out of its recent consolidation confirming a bullish breakout. On the daily chart, the stock prices have confirmed a bullish reversal pattern known as ‘Inverse Head and Shoulder’. The said pattern breakout is witnessed with a bullish candlestick pattern and above average volumes. Considering all these pieces of evidence, we recommend buying at current levels for a target of Rs 945 and the stop loss should be fixed at Rs 807.
2. NSE Code – INDIAN HOTELS COMPANY
Last Close: Rs 154.90
Justification – On the weekly chart, the stock prices have broken out from trend line resistance, which has been acting as a stiff resistance since last one year and a break from the same, unfolds a robust upside move. If we try to analyze volume activity, above average volumes during the up move is visible; whereas volumes were on the lower side during the down move. This development indicates accumulation in the stock. Moreover, prices are well above major moving averages on the daily chart and that confirms overall bullishness in the counter. Thus, we recommend buying at current levels for a target of Rs 169 and the stop loss should be fixed at Rs 146.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.