For the past few weeks, Nifty has been continuously going in the correction mode. Recently it broke the support of 17613. It became clear that the decline in this is real. It may have bounced in the last one or two sessions but it is swinging from lower bottom to lower top. In such a situation, the question arises that in which stocks to invest in this situation. At present, there are two stocks in which good profits can be earned by investing.
Target Price – Rs 1020
Stop Loss Rs-870
Current Price – Rs 920
Cummins shares have shown strength this week. Nifty rose 9.94 per cent this week but Cummins shares gained 4.76 per cent. Technical indicators are showing signs of strength in this stock. The stock is above the 20-day SMA. Daily Momentum Indicators (RSI) such as 14-day RSI have also made a comeback. At present, the intermediate technical set-up is positive and we believe that the stock has a lot of upside potential. In the coming weeks, you can buy it between Rs.912 to Rs.920.
Target Price – Rs 530
Stop Loss – Rs 455
Current Price – Rs 480
Intermediate uptrend is visible in Tata Motors. For the last few months, it seems to be making higher top and higher bottom. Recently, this stock has taken the support of 50 days SMA after falling down and then made a comeback. This week it has seen good volume. Technical indicators are showing signs of strength in this stock. Daily Momentum Indicators (RSI) like 14-day RSI has also made a comeback.
The stock is likely to continue its gains for now. You can buy it between 475-480 during the coming weeks. At present its price is Rs 480. The stop loss is Rs 455 and the target is Rs 530.
(Article: Subash Gangadharan)
(Subhash Gangadharan is Senior Technical & Derivatives Analyst, HDFC Securities. This article contains his views. Before investing, consult your investment advisor)