Aditya Agarwal of Way2Wealth Securities says the Nifty can test 11,760-11,800 if it crosses the resistance placed near 11,620 levels
Aditya Agarwal
Moneycontrol Contributor
After two days of profit booking, the Nifty resumed its uptrend during Tuesday’s session and eventually surpassed its recent swing high to close above the 11,600 mark for the first time since August 2018.
Looking at the hourly chart, the Nifty has formed a bullish ‘Cup & Handle’ formation, which is a continuation pattern.
Rollovers from March to April series were quite encouraging and long rolls were seen in banking, NBFC, technology, cement, and oil & gas sectors, whereas auto, metal and FMCG sectors saw short rollovers to the next series.
For a short to medium-term perspective, we remain bullish on markets and expect the Nifty to retest its all-time high of 11,760.20. In the short-term, the index will find immediate resistance near 11,620. It it takes out that level, it can test 11,760-11,800 levels.
On the flip side, the support level for the index is placed at 11,570, 11,413, and 11,311 levels.
Here is a list of stocks which could provide 8-9 percent return in the next month:
Nestle India: Buy around Rs 11000 – 10800| LTP: Rs 10,994| Target: 11650 – 12000| Stop Loss: Rs 10,500| Upside 9%
On the daily charts, Nestle India formed a strong base near the psychological level of 10,000 and rebounded sharply in the last 2 weeks.
In the process, the stock confirmed its breakout from the Symmetrical Triangle pattern. Looking at the higher degree chart, it seems that the stock is in the process of forming an Ascending Triangle pattern.
The target of the Symmetrical Triangle pattern comes near Rs 11,650 which precisely coincide with the upper trend line of an Ascending Triangle.
Thus, we advocate traders to buy this stock in the range of 11000 to 10800 with an upside price target of 11650 – 12000 levels respectively. A stop loss should be placed below 10,500.
Page Industries: Buy around Rs 24250 – 24100| LTP: Rs 24,897| Target: Rs 27000| Stop Loss: Rs 23300| Time frame 15 to 21 trading sessions| Upside 8%
On the monthly chart, Page Industries is consistently making lower highs and lower lows pattern and during the last month, the stock precisely took support at the upper sloping trend line drawn by joining its crucial lows.
Subsequently, it saw a decent pullback during the current month of March and in that optimism, the stock surpassed its previous month high and eventually formed higher top higher bottom formation.
The daily RSI (14) entered above the 60 levels for the first time during its fall from its all-time high. Thus, we maintain our bullish view on stock and expect to rally further.
Long positions can be initiated in this stock in a range of Rs 24250 – 24100 with a price target of Rs 27000. A stop loss should be placed below Rs 23,300.
(The author is Head Technical Research, Way2Wealth Securities Pvt. Ltd.)
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