By Subash Gangadharan
On the daily chart, we observe that the Nifty has recently bounced back from the lower end of a downward sloping channel and has witnessed a smart rally over the last 5 weeks. In the process, the Nifty has crossed its previous intermediate high of 17,800, thereby reversing the recent intermediate downtrend. The Nifty could now target the next intermediate highs of 18,135 in the coming weeks. Crucial supports to watch for weakness are at 17,612-17,553.
The stock has since then bounced back and made a higher bottom. Last week, the stock broke out of the recent trading range on the back of healthy volumes. Daily momentum indicators like the 14-day RSI have bounced back and crossed its 9 day EMA, which is a positive signal.
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 1990 and 2020 levels. CMP is Rs.2010.1. Stop loss is at 1900 while target is at 2150.
Buy: MSTC
MSTC has been making higher bottoms and higher tops over the last few weeks after touching a low of 239 in March 2023. In the process, the stock crossed its previous swing high of 287 touched on 09th March 2023.
Technical indicators are giving positive signals as the stock is trading above the 20 day and 50 day SMA. Momentum readings like the 14-week RSI too are in rising mode and not overbought, which is encouraging. With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks. Recommend a buy between the 286-292 levels. CMP is 289.7. Stop loss is at 268 while target is at 320.
(Subash Gangadharan, Research Analyst, HDFC Securities. Views expressed are author’s own. Please consult your financial advisor before investing.)