Stock Tips: Amidst the fluctuations in Nifty, investors can earn up to 17 percent profit within a month by investing in these two stocks.
Market Outlook: The Nifty has been showing a correction for the past few weeks. When Nifty broke the support level of 17613, only then the trend of decline in Nifty was fixed. Despite the recent bounce on the daily chart, it is showing a declining trend and has been making lower top and lower bottom in the last few weeks. Apart from this, the 20-day Simple Moving Average (SMA) has also remained consistently below the 50-day SMA, showing signs of a negative moving average crossover. Weekly momentum readings such as the 14-week RSI (Relative Strength Index) are also trending down.
The immediate trend of Nifty is to decline but in the short term, Nifty is consistently making higher top and higher bottom in the last few trading sessions on the 60 minute intra-day chart. If the Nifty crosses the recent high level of 17286, then the correction in the market may stop and once again it can see an uptrend. Talking about individual stocks, in the next 15-26 trading sessions, investors can earn handsome profits of about 17 percent by investing in KNR Constructions and Gujarat Narmada Valley Fertilizers and Chemicals.
The fall in crude oil increased the profits of oil companies; Neither the common people got relief, nor the petrol pumps
KNR Constructions
- This week KNR Constructions has shown relative strength. Nifty has gained 1.1 per cent this week but KNR Constructions has gained 5.2 per cent in the same period. During this time it has broken the recent trading range on the back of above average volumes.
- Technical indicators are giving positive signals regarding this stock as it is trading above the 20 and 50 day SMA.
- The rise in Daily Momentum Indicators like 14-day RSI is also showing signs of further upside in its prices.
- Investors can invest in this stock in the price range of Rs 297-303. On Wednesday (December 30), it had closed at Rs 300.80 on NSE. In this, investors can invest at a target price of Rs 340 by placing a stop loss of Rs 282.
Gujarat Narmada Valley Fertilizers & Chemicals
- Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) has been consistently making higher top and higher bottom for the last few months.
- Recently, a correction was shown in it and then it got support at the level of Rs 390. After this, this week, on the basis of great volume, it saw great growth.
- The stock is trading above the 20 and 50 day SMA due to which technical indicators are showing positive signs. Apart from this, the rise in Daily Momentum Indicators like 14-day RSI is also indicating further bullishness in its prices.
- The stock had closed on Wednesday at Rs 450.60. Investors can invest in it in the price range of Rs 445-455 by placing a stop loss at the level of Rs 415 at the target price of Rs 525.
(Article: Subhash Gangadharan, Senior Technical & Derivatives Analyst, HDFC Securities)
(The stock recommendations given in the story are from the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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