The Nifty50 soared over a percent, keeping up the winning spree for the third consecutive week and eloped above the descending trendline, which was a daunting task in the recent period. Eventually, the truncated-yet-eventful week concluded on a cheerful note, with the benchmark reclaiming the 19,700 zone.
Technically speaking, the recent developments construe a robust setup on the price charts for the Nifty and, as we move on, it is likely to have a follow-up move. Also, the breakout of the sloping trendline and the re-testing of the swing high portrays the bullish undertone. But, at the same time, one should avoid complacency and maintain a pragmatic approach as the high-beta index, which is also a major contributor to the Nifty, still struggles to keep up the momentum.
On the technical front, the 19,650-19,620 zone is likely to cushion short-term blips, while the sacrosanct support shifts to the bullish gap of 19,580-19,500. On the higher end, 19,850-19,900 holds intermediate resistance and a decisive move beyond this could trigger the next leg of rally to test the ATH (all-time high) zone in the comparable period.
We expect strong moves in the broader market; hence, one needs to have a stock-centric approach for better trading opportunities.
Here are two buy calls for short term:
Pidilite Industries: Buy | LTP: Rs 2,510 | Stop-Loss: Rs 2,395 | Target: Rs 2,640-2,680 | Return: 7 percent
Pidilite has seen strong buying traction in the last couple of trading sessions to recoup from the slumber phase. The recent developments have been backed by good volumes, which led the counter to comfortably hover above all its major EMAs (exponential moving average) on the daily chart.
Also, an Inverted Head & Shoulder pattern breakout has been seen, followed by the descending trendline breakout, affirming a robust view in the counter. The indicators are aligned with the view and it is expected to have a strong recovery in near period.
Hence, we recommend buying Pidilite Industries around Rs 2,490-2,500, with a stop-loss of Rs 2,395 and target of Rs 2,640-2,680.
Vardhman Textiles: Buy | LTP: Rs 379.45 | Stop-Loss: Rs 360 | Target: Rs 400-410 | Return: 8 percent
VTL has seen a strong rebound from the 200 SMA (simple moving average) to soar above all its EMAs on the daily chart. Also, the stock has witnessed a descending trendline breakout to recoup from the corrective phase and resume its northward journey.
On the oscillators' front, the counter has seen a positive crossover from the oversold territory and is likely to trigger momentum in the near period.
Hence, we recommend buying VTL around Rs 375, with a stop-loss of Rs 360 and target of Rs 400-410.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.