Nifty Outlook: The domestic equity benchmark index was up for two consecutive days. The rally of the last two trading days helped to eliminate the negative sentiment that had come in the minds of investors due to the sharp fall in the market on Friday and Monday last week. This is a positive sign for the market in the short term. Nifty is currently at an important resistance level of 17500-17550. This is an important area level as the Nifty had slipped sharply below it twice before. In such a situation, if Nifty crosses this resistance level, then there can be a great rally in the short term.
If Nifty goes above 17550-17600 level then it can cross 18 thousand level soon. If Nifty is not able to cross this level, then it can slip to the level of 17250-17200 in the near term. Talking about individual stocks, investors can earn up to 11 percent profit in the next three to four weeks by investing in Sobha and Minda Industries.
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Buy SOBHA Ltd- (Wednesday closing price on NSE: Rs 857)
- On the weekly timeframe for the past several months, Sobha has been showing signs of a steady uptrend. Its prices are constantly making new higher top and higher bottom on the weekly chart. Recently it had fallen at the level of Rs 756 and now it can be considered as the new higher bottom. RSI (Relative Strength Index) is at 60 and now if it goes further, the share price can also see a rise.
- Investors can invest in this company at the current price and can add shares to the portfolio up to the price of Rs 822. One can invest in this by placing a stop loss of Rs 795 at a target price of Rs 945 for the next three to four weeks.
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Buy Minda Industries Ltd – (Closing Price on NSE on Wednesday: 919.05)
- The stock has been climbing steadily over the past several months. It is making higher bottom and higher top. Recently it showed slight correction but now it is again getting stronger above the higher bottom. Weekly RSI is also showing positive signs.
- Investors can buy it at the current price. If its prices break, then investors can increase the number of shares at a price of up to Rs 880. Investors can invest in it for the next three to four weeks by placing a stop loss of Rs 855 on the target price of Rs 1020.
(Article: Nagraj Shetty, Technical Research Analyst, HDFC Securities)
(The stock recommendations given in the story are those of 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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