By Subash Gangadharan
On the Daily Nifty chart, we can observe that after recently touching a low of 15183, the Nifty has been consistently rising and making higher tops and higher bottoms over the last few weeks. In the previous week, the Nifty 50 index crossed the previous intermediate high of 16794, thereby reversing the recent intermediate downtrend. The Nifty also comfortably trades above the 20-day and 50-day SMA and the 14-week RSI too is in rising mode and not overbought. The Nifty could now be headed towards a downward sloping intermediate trend line resistance at around the 17800 levels in the coming sessions. Short-term weakness or consolidation is however not ruled out.
With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 348-355 levels. CMP is 352.4. Stop loss is at 330 while the target is at 390.
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Buy UTI AMC
UTI AMC has been rallying higher for the last few sessions after finding support at the 595 levels. In the process, the stock has broken out of its recent trading range. Technical indicators are giving positive signals as the stock is trading above the 20 and 50-day SMA. Recently, there was a positive moving average crossover as the 20-day SMA moved above the 50-day SMA. Momentum readings like the 14-day RSI are in rising mode.
With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 720-734 levels. CMP is 731.55. Stop loss is at 670 while the target is at 825.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)