Nifty Outlook: The market may continue to decline for one to two days.
Nifty Outlook: The rally of the domestic market in the new year has stopped today (January 6) and on the day of weekly F&O expiry today (January 6), there is a trend of decline in BSE Sensex and Nifty 50. Earlier, domestic benchmark indices had strengthened in four consecutive trading sessions since the last day of last year. Nifty had strengthened 120 points on Wednesday’s trading day and formed a long bull candle with minor upper and lower shadows on the daily chart. Technically, this pattern is indicating the further strengthening of the market. However, in the same pattern, the lower shadow is forming in the bull candle of the last two trading sessions, which can be bought if there is a fall in intra-day.
The market had strengthened on Wednesday as well, but its uptrend slowed down and volatility is increasing at higher levels. In such a situation, the decline in the market may continue for one to two days. Nifty is getting immediate support at the level of 17760 and in the near term it is expected to reach the level of 18200. Talking about individual stocks, investors can earn up to 12 percent profit in the next three to four weeks by investing in Welspun India and Hindustan Copper.
Stock Tips: Shares of this company can rally up to 12%, know what is the target price
Buy Welspun India Ltd- (Current Price – Rs 155)
- According to the weekly timeframe chart, its price is showing signs of a bounce above the price of the last two weeks. Its price was moving in a big consolidation pattern for the last two months and now it is trading above this range at the level of Rs 152-153. If its price rises strongly above Rs 155, then it should be considered as a breakout and since the stock remains above the weekly 10 and 20 period EMA (Exponential Moving Average), then there is a possibility of a bounce. The weekly 40 period RSI (Relative Strength Index) is also above 60, which is positive about the strength of its sentiment.
- You can buy this share at the current price (Wednesday’s closing price – Rs 155) and if there is a slippage, then you can increase the number of shares up to Rs 149. On investing in this, for the next three to four weeks, a target of Rs 172 should be set at a target price of Rs 144.
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Buy Hindustan Copper Ltd- (Current Price – Rs 134.45)
- This metal stock has been showing a sharp jump since last two weeks and now its price is above the down-sloping trend line of Rs 130-132 and if it remains above it then it can see a sharp jump in the short term. For the last two to three months, its lower level is rising, which is indicating strength in the price. The volume activity of its shares is also increasing. Weekly 14 period RSI is also giving positive signals.
- Its current price (Wednesday’s closing price) is Rs 134.45. You can invest at this price and if there is slippage in it, you can increase the number of shares in the portfolio at Rs 129. Its prices can reach up to Rs 150 in the next three to four weeks. However, it would be better to fix a stop loss of Rs 125.
- (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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