By Nagaraj Shetti
After showing weakness in the last few sessions, Nifty shifted into an upside bounce with volatility on Wednesday and closed the day higher by 97 points. The market was not able to sustain above the hurdle of 19800 levels and moved into a consolidation in the mid to later part of the session. The opening upside gap remains unfilled.
Conclusion:
The near-term uptrend of the Nifty remains intact. Minor downward correction of the last few sessions seems to have been completed and the market is now shifted into an upside bounce. A decisive move above 19850 is likely to open doors for a higher target of 20050 in the near term. Immediate support is at 19600 levels.
Stock Picks:
Buy Indus Towers Ltd – (CMP Rs 181.50)
After shifting into a narrow range movement in the last 5-6 weeks, the stock price INDUSTOWER has witnessed a sharp upside breakout of the range as well as the hurdle as per change in polarity at Rs 170 levels in this week and is currently trading higher. The volume has started to expand during upside breakout in the stock price and daily RSI shows a positive indication.
Buying can be initiated in INDUSTOWER at CMP (181.50), add more on dips down to Rs 174, and wait for the upside targets of Rs 199 and Rs 220 in the next 3-5 weeks. Place a stoploss of Rs 168.
Buy GODFREY PHILLIPS INDIA LTD – (CMP Rs 1718.05)
After showing weakness in the last couple of weeks, the stock price GODFRYPHLP has bounced back from the lows this week. Presently, the stock price is in an attempt of witnessing a decisive upside breakout of downsloping trend line resistance at Rs 1715 levels. Volume and oscillators are signaling positive indications.
One may look to buy GODFRYPHLP at CMP (Rs 1718.05), add more on dips down to Rs 1655 and wait for the upside targets of Rs 1870 and Rs 2015 in the next 3-5 weeks. Place a stoploss of Rs 1605.
(Nagaraj Shetti is a Technical Research Analyst at HDFC Securities.Views expressed are the author’s own.)