After the solid 1.8% rally on Friday, what are the key levels to watch out for in the new week?
Nifty has finally managed to break out from the congestion zone of 18200-18300, which it was trying to break in the last few trading days. On the weekly scale, a bull candle with a long lower shadow was noticed. Nifty has finally broken and even given a weekly close above 18200, indicating that bulls are now in control, as all previous attempts to close above 18000 on a weekly basis had failed in the previous 7 months. Indicators like RSI and MACD also indicate positive direction in the market. Nifty may rise towards the 18450 to 18550 band in the near term while the 18100 to 18000 could provide support. The volatility index India VIX fell 7.46 percent to 14.40, providing more comfort to bulls. If volatility remains below the 15 level, the market may become more stable.
18,000 levels would be important support till this weekly expiry. In this market, investors must be patient and invest in stages.
Both banks and IT stocks have led from the front. How are the charts looking like for Nifty Bank in the coming week?
Nifty IT is steadily making higher highs and lows where it has managed to close above all its short-term moving averages. The next big hurdle from Nifty IT is breaking the 200-day EMA which currently stands at 29700. Bank Nifty is moving in a positive upward channel for the past one month, taking support along the way. It is forming higher highs and higher lows and managed to close at a 52-week high of 42137. RSI and MACD are indicating a positive momentum for Bank Nifty. Support for Bank Nifty has shifted to 41000 to 41500, and we would continue to stay bullish until these levels are broken.
PSU bank stocks continued to outshine this week as well. Anyone on your buying list?
PSU Bank has just begun to bulk up and has entered a rise with leading indices. As Bank Nifty made new highs, support was aided by PSU stocks as well. On a daily time frame, the momentum indicators as RSI and MACD remain on the positive side. PSU Bank would continue to outperform in the short to medium term. As volatility is now contracting, long term investors would be more confident to stay invested. Last week, PSU Bank has delivered 6.46 percent return and we expect the PSU Index might test 4000 levels in coming days. In addition to , , , and could offer respectable returns in the near future.
How strong is the momentum in HDFC twins? Any targets?
HDFC Bank and HDFC were in long consolidation and finally managed to give a breakout. In past months resistance was seen in HDFC Bank around Rs 1500 to Rs 1520 levels, which it was struggling to cross higher. HDFC Bank finally gave a breakout along with good volumes and we expect this momentum to continue further and take HDFC Bank to Rs 1700 to 1750 levels. HDFC had resistance around Rs 2480 to Rs 2500 levels and now has given a breakout. We expect this momentum to continue and take HDFC to Rs 2750 to Rs 2800 in coming days.
Which are the 3-4 stocks that would be on your radar for the week?
On the weekly chart, the stock is sustaining above Rs 400 levels which was previously acting as resistance confirms bullishness. Moreover, it is also forming a higher high and higher low formation on the daily chart. On the daily chart, the stock is trading above 21 and 50 DMAs, confirming the ongoing rally. Positive crossover is indicated in RSI and MACD in momentum indicators. The sustenance with high volume points out buying interest among traders. Hence, based on the above technical structure, one can initiate a long position at CMP Rs 400.5. However, on the safer side nearby Rs 395-396 levels would be a better range to enter. Closing and sustaining above Rs 408 will lead towards Rs 435-440 levels in coming days. Stop loss can be kept at Rs 380.
On the daily chart, the stock is in a bullish trend and forming an ascending triangle. Also, there is good volume participation whenever the price tries to breach the trendline, forming a higher low. Moving averages have converged, especially 21 & 50, around Rs 107 to 110 levels. Based on DMI, a strength indicator which is at 28, suggesting that there is strength in the up move and will continue to do so. Finally, based on the chart pattern, Hindustan Copper can be bought at CMP of Rs 113, with a possibility of 6% to 9% target which can be placed at Rs 119 to Rs 123. Our view will negate if the price breaches Rs 108.
On the daily chart, the stock is in a good positive uptrend and has good volume participation along the rising trendline. It has managed to make higher lows and lower highs for the past few months, confirming a symmetrical triangle formation. Bollinger Band expansion is seen along with price action suggesting that the volatility will take the price to higher levels. The stock is trading above all its short-term, medium-term and long-term moving averages. Finally, based on the symmetrical triangle pattern and all other factors, the stock is a buy at Rs 509 with an upside potential of Rs 540 to Rs 545 with a stop loss of Rs 494.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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