Saturday, July 27, 2024
HomeBusinessBuy these two stocks for near-term gains while Nifty navigates choppy waters

Buy these two stocks for near-term gains while Nifty navigates choppy waters

Date:

Related stories

Guide to Using Essential Oils for Skincare

Essential oils are famous for skincare. They come from...

Signage for businesses – Services and their benefits

Signage is a form of advertising that conveys the...

OPSC Recruitment 2024: Apply Online for Latest Vacancies

The Odisha Public Service Commission (OPSC) has announced its...

Why It’s Important for Teachers to Teach Social and Emotional Skills

Academic knowledge alone is not enough to prepare students...

How Religion Supports and Shields Children’s Mental Health

In the UK today, many parents and foster carers...

[ad_1]

The short term trend of Nifty continues to be choppy with weak bias.

By Nagaraj Shetti

The decline with choppy trend continued in the market for the third consecutive session on Wednesday and Nifty closed the day lower by 26 points. After opening on a positive note, Nifty made an attempt to move up in the early to mid part of the session. Intraday weakness got triggered at the high of 15839 in the afternoon and the market showed a gradual weakness from the highs in the second half and closed near the lows.

A small negative candle was formed with minor upper shadow. This pattern signal continuation of weak trend amidst a range bound action in the market. Wednesday’s negative candle has overlapped the similar negative candle of previous session. This action has not negated the recent uptrend in the market and such consolidation movements near all time high could eventually result in an upside breakout of the hurdle.

After showing sharp declines from all-time highs in past, the Nifty witnessing a range bound action this time could indicate that the market is preparing for a sharp movement on either side. The overall chart pattern signal higher possibility of an upside.

The short term trend of Nifty continues to be choppy with weak bias. The next support of 20 day EMA could offer base at 15670 in the short term. The range bound action is likely to continue for the next session. The near term high low range to be watched at 16650-16850 levels.

See also  Waterproof Pop up Canopies: How Well Do They Perform in Heavy Rain?

Stock Picks: 

Buy Rashtriya Chemicals & Fertilizers Ltd- (CMP Rs 83.70) 

The Fertilizer stock (RCF) has been in a range bound action since past 6 weeks, before showing upside bounce in this week. The stock price is currently moving up and is expected to stage upside breakout of the down sloping trend line, which is at Rs 85-86 levels in the short term. Hence, a sustainable upmove above this area could open a sharp uptrend in the near term. On the weekly chart, the stock price is sustaining above the immediate support of weekly 10 period EMA at Rs 81 levels. Weekly 14 period RSI shows positive indication.

Buying can be initiated in RCF at CMP (83.70), add more on dips down to Rs 80, wait for the upside target of Rs 93 in the next 3-4 weeks. Place a stoploss of Rs 77.50.

Buy General Insurance Corporation of India – (CMP Rs 208.20) 

After showing a range bound action in the last one month, the stock price has shifted into a reasonable upside bounce in this week so far. Currently the stock price is making an attempt to stage upside breakout of the range at Rs 212 levels. The immediate weekly support of 10 period EMA is holding and resulting in a decent upside bounce in the stock price at Rs 200 levels. The volume and weekly RSI shows positive indication. 

Buying can be initiated in GICRE at CMP (208.20), add more on dips down to Rs 200, wait for the upside target of Rs 230 in the next 3-4 weeks. Place a stoploss of Rs 194.

See also  Analysis-World's damaged supply chains brace for painful recovery By Reuters

(Nagaraj Shetti is a Technical Research Analyst at HDFC securities. Views expressed are the author’s own.)

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

Source link

Bellie Brown
Bellie Brownhttps://businesstimes.org
Hi my lovely readers, I am Bellie brown editor and writer of Businesstimes.org. I write blogs on various niches such as business, technology, lifestyle., health, entertainment, etc as well as manage the daily reports of the website. I am very addicted to my work which makes me keen on reading and writing on the very latest and trending topics. One can check my more writings by visiting Cleartips.net

Latest stories