Stock Tips: Nifty touched new highs a trading day earlier on August 25 but after that it declined under selling pressure. However, there is a possibility of a rise in Nifty in the short term trend. If it remains above the support level of 16608, then once again it can reach the record high. However, if it goes below this, there can be a correction in Nifty and its support level can slip up to 16592. Talking about the daily chart, Nifty has remained consistently above the line passing through it, which has been important low levels for the last few months. With this, there are signs of bullishness in Nifty.
Apart from this, it is trading above the 20 and 50 day SMA (Simple Moving Average) which is indicating an uptrend. In such a situation, the fall in Nifty should be seen as a golden opportunity to buy. Nifty may touch the level of 17 thousand in the coming few weeks, although due to the correction under selling pressure, it may slip to the level of 16286. For the next 15-26 trading days, investors can earn up to 13 percent profit by investing in Balrampur Chini and Adani Ports.
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- Balrampur Chini has shown strength this week. Nifty has seen marginal gains this week but Balrampur Chini has gained 3.88 per cent and has broken the recent trading range on the back of higher average volume.
- The stock is trading above 20 week and 50 week SMA due to which technical indicators are giving positive signals. Apart from this, daily momentum indicators like 14-day RSI (Relative Strength Index) have also jumped and now they are likely to remain bullish even further.
- If this stock can reach a new high in the coming week, then investors can buy it at a price of Rs 369-373. Investors can invest in this stock by placing a target of Rs 420 on the stop loss of Rs 347. At present its price is Rs 371 per share.
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Adani Ports- Buy
- About two months ago, in early June 2021, the shares of Adani Ports had reached a record high of Rs 901. Although it was slippery after that, but around mid-June it got support around 638. Now it is trading in the range of 638-762 for the last two months.
- On Wednesday, the stock closed above the 20 and 50 day SMA on the back of higher volume on average. Apart from this, there is a bounce in Daily Momentum Indicators like 14-day RSI and it continues to be bullish even further.
- Adani Ports may see a rally in the coming weeks and in such a situation, investors should buy this stock at 717-725 level. You can invest in this stock at a target price of Rs 785 by placing a stop loss of Rs 690. Its current price is Rs 721.1.
(Article: Subhash Gangadharan, Senior Technical and Derivatives Analyst, HDFC Securities)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)