ETMarkets Smart Talk: RIL among 3 top stock ideas for this week from Sumeet Bagadia

Where do you see Nifty and Bank Nifty going ahead in the November series?

The Put Call Ratio of November series stands at 1.34, suggesting bulls are taking charge. On the sectoral front, Nifty PSU Bank, Auto & Metal ended 3-5% up on a weekly basis while Nifty IT & Media closed on the lower side. On the technical front, Nifty has been trading with a higher high and higher low formation on the weekly charts suggesting strength for the upside. The index has been facing resistance from an upper band of Bollinger, which suggests crossing above the same can continue the upside momentum.

The support for Nifty has shifted around 17,600 levels. On the other hand, Bank Nifty has support at 40,200 levels while resistance is placed at 41,800. Traders are advised to keep a buy-on-dip approach until there’s any change in data and look for stock-specific opportunities with a positive bias.

With a rally of 5.1%, Nifty PSU Bank turned out to be the top sectoral gainer in the week. Do you see the momentum intact in the week ahead?
PSU Bank has materially remained among the top movers among other sectors. Overall, PSU banking stocks remained on edge as compared to private banks and this has increased confidence of long-term investors.

, and are currently outperforming and taking the lead. PSU Bank is finally getting ready for a good move as volatility is now contracting. In the last one month, PSU Bank has delivered 19.65 per cent return and we expect the index to test 3,600 levels in coming weeks.

Which PSU bank stocks would you be eyeing on Monday?

Bank of India. On a monthly chart, the stock has given a breakout of the accumulation phase and sustained above 55 levels, which suggest strength for the upcoming session. Furthermore, the stock has formed a bullish marubozu candle on the monthly chart which adds bullishness to the price. On the daily chart, the stock is trading above 50 simple moving averages, confirming the price action’s support. Daily momentum indicator Stochastic has shown a positive crossover, which adds more bullishness to the price. Hence, based on the above technical structure one can initiate a long position at CMP 58.70. However, on the safer side, one can also enter near Rs 57 levels. Closing and sustaining above Rs 60 will lead toward Rs 65-67 levels in the coming days. A stop loss can be kept at Rs 54.

What does the chart look like for stock? Any targets?

The stock is developing a soccer pattern on daily charts, which supports bullishness. On the daily chart, the stock is trading above 21 simple moving averages, confirming the price action’s support. RSI plotted on the daily timeframe is above 50 levels, which reflect the strong momentum in the stock. The Bollinger Band on the daily timeframe has started to expand with volume participation indicating that the volatility in the underlying is increasing for an upside move. Hence, based on the above technical structure, one can initiate a long position at CMP Rs 9,490. However, on the safer side, one can also enter near Rs 9,400 levels. Closing and sustaining above Rs 9,560 will lead toward Rs 9,800-9,900 levels in the coming days. A stop loss can be kept as Rs 9,000.

After the 20% rally seen in on Friday, what should be the trading strategy for Monday?

Infibeam Avenues is a mid-cap software company mainly indulged in digital payment solutions and enterprise software platform provider. Infibeam soared 20.98 per cent in the last week and particularly on Friday closing. Technically, one-day delivery volume has increased 71.49 per cent over the 5-day average. The stock is trading higher than its 20-day and 50-day moving averages as well. We expect the stock to test the level of Rs 20-22 in the coming weeks. We recommend a cautious positive approach for the short term traders.

Which are the top 3 stocks that would be on your radar for the week?

Reliance Industries

On a daily chart, the stock has given a breakout of Ascending Triangle and managed to sustain above Rs 2,450 levels, which suggests upside movement in the counter. Furthermore, the stock has been trading above its 21-day moving averages, which shows a positive trend for the time being. Daily momentum indicator Stochastic has shown a positive crossover, which adds more bullishness to the price. Hence, based on the above technical structure, one can initiate a long position on RIL at CMP Rs 2,526. Keep a stop loss at Rs 2,450 for a target price of Rs 2,650-2,700.

Kotak Mahindra Bank

On the weekly chart, price action embarked on strong traction above Rs 1,850 levels confirming bullishness in the stock. Moreover, it is also forming a higher high and higher low formation on the daily chart. The price is trading above Ichimoku Cloud in the hourly chart and positive crossover is indicated in RSI and MACD. Hence, based on the above technical structure one can initiate a long position at CMP Rs 1,884. Closing and sustaining above Rs 1,925 will lead towards Rs 2,000-2,020 levels in the coming days. A stop loss can be kept at Rs 1,820.

Oberoi Realty

The stock is developing a double-bottom pattern on an hourly chart, which supports the stock’s bullishness. On the daily chart, the stock is trading above its 21-day simple moving averages, confirming the price action’s support. RSI plotted on the daily timeframe is above 50 levels which reflect the strong momentum in the stock. Hence, based on the above technical structure one can initiate a long position at CMP Rs 905, However, on the safer side, one can also enter near Rs 895-890 levels. Closing and sustaining above Rs 920 will lead toward Rs 1,000-1,030 levels in the coming days. A stop loss can be kept at Rs 830.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)