While there could be corrections in the very near term, we expect the index to make new life highs in the coming sessions. By Subash Gangadharan
The Nifty has convincingly reversed the recent downtrend by moving up from a trend line support and convincingly closing above the 50 day SMA last Monday on the back of the Budget. With the uptrend intact, the Nifty now comfortably trades above the 20 day SMA. While there could be corrections in the very near term, we expect the index to make new life highs in the coming sessions.
It is important that the Nifty does not move below the support of 14864 on any corrections for the short term uptrend to remain intact.
The below picks are for the next 15-26 trading sessions
Buy Advanced Enzyme Technologies
Advanced Enzyme has broken out of a consolidation range of 296-368 this week. The breakout was accompanied with above average volumes, which indicates that there was significant accumulation in this stock.
Technical indicators too are giving positive signals as the stock trades above the 20-day and 50-day SMA. Intermediate momentum readings like the 14-week RSI too are in rising mode and not overbought.
With the stock near its 52-week high of 385, we believe the stock is ready to continue the next leg of its underlying uptrend and has the potential to move higher in the coming weeks. Upside acceleration is likely to occur once the stock crosses the current 52 week high of 385.
We, therefore, recommend a Buy between the 355-375 levels. CMP is 369.9. Stop loss is at 330 while targets are at 470.
Buy Indiabulls Housing Finance
Indiabulls Housing Finance has broken out of the 210-227 trading range on Wednesday on the back of above average volumes.
Technical indicators are giving positive signals as the stock trades above the 20-day and 50-day SMA. Intermediate momentum readings like the 14-week RSI too are in rising mode and not overbought.
With the short term and intermediate technical setups looking attractive, we expect the stock to gradually move higher in the coming weeks. We, therefore, recommend a Buy between the 225-236 levels. CMP is 234. Stop loss is at 210 while targets are at 285.
(Subash Gangadharan is Senior Technical and Derivative Analyst at HDFC Securities. The views expressed are the author’s own. Please consult your financial advisor before investing.)
This article is auto-generated by Algorithm Source: www.financialexpress.com
