Bullish bets for the subsequent 7 days shall be off if the Nifty dives decrease and strikes beneath the current lows of 12520.
By Subash Gangadharan
After witnessing a dream rally final week, the Nifty continued to rally this week to new lifetime highs. The Nifty has been constantly shifting greater since final week after discovering help on the 50-day SMA and breaking out of a 3-day buying and selling vary on final Tuesday. The Nifty additionally stays above the 20-day and 50-day SMA and has now closed at a brand new life time excessive after clearing the current highs of 12026. The chances subsequently do appear greater of the Nifty shifting up additional in the direction of the 12900-13000 ranges within the coming classes. Brief time period promote offs nevertheless can’t be dominated out.
We advocate a selective shopping for method in outperforming sectors with strict cease losses to manage danger. Our bullish bets for the subsequent 7 days shall be off if the Nifty dives decrease and strikes beneath the current lows of 12520. On this situation, the draw back targets can be at 12367.
The beneath picks are for the subsequent 22 buying and selling classes
Aurobindo Pharma After consolidating for the final one week in a variety and above the 200-day EMA, Aurobindo Pharma has damaged out of the 750-800 buying and selling vary on Wednesday. The breakout got here on the again of above common volumes, which signifies important accumulation.
Technical indicators are giving constructive indicators because the inventory trades above the 20-day and 50-day SMA. Momentum readings just like the 14-day RSI too are in rising mode and never overbought.
We consider the inventory is able to proceed the subsequent leg of its underlying uptrend and has the potential to maneuver greater within the coming weeks. We subsequently advocate a Purchase between the 790-816 ranges. CMP is 814.45. Cease loss is at 755 whereas targets are at 940.
SAIL SAIL has bounced again strongly from the helps of 32 in the previous couple of weeks. These ranges additionally supplied help to the inventory in August 2020, thereby making it a robust help.
The inventory has now damaged out of its current swing highs of 36.7, thereby indicating that the uptrend seems to be set to proceed. With momentum readings just like the 14-day RSI in rising mode and never overbought, it signifies potential for extra upsides within the coming weeks.
We subsequently advocate shopping for SAIL between 38-40. Cease loss is at 37, whereas targets are at 46.
(Subash Gangadharan is a Senior Technical and Spinoff Analyst at HDFC Securities. The views expressed are the creator’s personal. Please seek the advice of your funding advisor earlier than investing)