Market Trading Guide: SBI Life Insurance among 5 stock recommendations for Monday
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, ETMarkets.com|
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Stock Ideas
Indian shares logged weekly gains on Friday after US boutique investment firm GQG Partners' $1.87 billion investment in Adani stocks spurred a broad-based rally and helped markets look past rate-hike worries for the moment. The Nifty50 index rose 1.57% to 17,594.35, while the S&P BSE Sensex closed 1.53% higher at 59,808.97. Both benchmarks posted their best day since November 11.
“On the daily charts, we can observe that the Nifty is in a pullback mode and currently retraced 38.2% of the fall from 18,134 to 17,255. We believe that there is more steam left to this pullback rally, and hence it can extend higher till 17,700, where resistance in the form of the 50% Fibonacci retracement level (17695) and the 20-day moving average (17703) is placed. Considering the sharp upmove in today’s trading session, consolidation cannot be ruled out. Overall, we expect the Nifty to trade in the range of 17700 – 17200 from a short-term perspective,” Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas, said.
On a broader time frame, the stock had been in a prolonged downtrend. Therefore, there has been a recent sharp reversal from its oversold territory. The texture of the chart formation and technical indicator RSI indicates a current reversal to sustain a new leg of the uptrend in the coming horizon.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities)
After the short-term correction in the counter from the higher levels, the downward momentum stopped. On daily charts, the counter is forming a rounding bottom chart formation from its important support zone, suggesting a revival of the uptrend from the current levels.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities)
Post decline from the higher levels, the counter rebounded from its multiple support zone on the daily charts. The counter is witnessing a steady recovery from the lower levels. The gradual up moves in the counter suggest a new leg of a bullish trend in the near term.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities)
The stock has given a breakout of a ‘Falling Supply trend line’ on the daily charts with a Bullish candlestick. The overall structure of the counter is very bullish, as it is trading above all of its important moving averages. In addition, the technical indicator Ichimoku cloud suggests that the price is trading above the conversion & baseline, which shows a Bullish trend in the counter. A momentum indicator RSI (14) reading is above 55 levels.
So, based on the above-mentioned technical structure, one can initiate a Long position in the stock at CMP Rs 222.95, or a fall in the price till Rs 220.50 levels can be used as a buying opportunity for the upside target of Rs 237. However, the bullish view will be negated if the stock closes below the support level of Rs 216. (Mahesh Prakot, Research Analyst, Bonanza Portfolio)
The stock has given a breakout of a "Symmetrical Triangle Pattern" on the four hourly charts with Bullish Candlestick. At the same time, the price also formed a Double Bottom Pattern confirming long positions. The MACD indicator also suggested a positive crossover, which can be used as a confluence toward the bullish view. Prices also reversed from prior demand zones with bullish volume, which adds more strength. The momentum oscillator RSI (14) is showing strength by sustaining above 55.
(Mahesh Prakot, Research Analyst, Bonanza Portfolio)
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)