By Subash Gangadharan
Nifty 50 has been trending decrease for the previous few weeks and making decrease tops and decrease bottoms within the course of. And Nifty has been shifting decrease after the current breakdown from 16,824-17,415 buying and selling vary. While we stay open to pullback rallies within the very close to time period, we anticipate the downtrend to proceed. Our quick time period bearish view would flip bullish provided that the Nifty manages to take out the highs of 17,133. Therefore suggest a go-slow strategy on recent longs until we see indicators of sustainable energy.
The beneath picks are for the subsequent 15-26 buying and selling periods
Buy Gujarat Gas
Gujarat Gas has proven relative energy this week. While the Nifty index has misplaced 1.27% this week, Gujarat Gas has gained 4.55% over the identical time interval. In the method, the inventory has additionally damaged out of its current buying and selling vary on the again of above common volumes.
Zooming into the day by day chart, we are able to observe that the inventory trades above the 20 day SMA. Daily momentum indicators just like the 14-day RSI too are in rising mode and never overbought, which augurs properly for the quick time period uptrend to proceed.
We due to this fact imagine the inventory has the potential to maneuver larger and take out its earlier intermediate highs within the coming weeks. We suggest a purchase between the 537-541 ranges. CMP is 539.35. Stop loss is at 502 whereas goal is at 600.
Buy Axis Bank
After correcting from a excessive of 816 touched in April 2022, Axis Bank discovered assist on the 648 ranges in May 2022. These are robust assist ranges as they correspond to earlier intermediate lows touched in December 2021.
On Wednesday, the inventory broke out of its current buying and selling vary. Momentum readings just like the 14-day RSI too have bounced again from oversold ranges and are in rising mode now.
With the intermediate technical arrange too wanting constructive, we imagine the inventory has the potential to maneuver larger within the coming weeks and due to this fact suggest a purchase between the 670-680 ranges. CMP is 675.85. Stop loss is at 655 whereas goal is at 710.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views expressed are the creator’s personal. Please seek the advice of your monetary advisor earlier than investing.)
Source: www.financialexpress.com”