Stock Tips: Nifty 50 is consolidating in a modest range in the last few trading days. During this period, the index did not show a special trend of uptrend. However, when it comes to the daily time frame, Nifty recently made higher bottoms at 16162, 16376 and 16565 and is now trading above the simple moving averages of 20 and 50 days. Due to this, the domestic equity benchmark index is showing signs of an uptrend. In the 60-minute chart on Wednesday, Nifty has bounced above the 50-day moving average on Wednesday’s trading day, showing signs of continuation. The next target for Nifty in the near term is 17500. Nifty is getting support at 17238. Investors can earn up to 16 percent profit by investing in individual stocks for the next 15-26 trading days.
What is the fund of Fund of Funds, which investors should invest in FOF, what is its profit and loss
KEI Industries – Buy
- This week KEI Industries has shown better strength. This week Nifty 50 did not register a significant increase, but the prices of KEI Industries have jumped 6.19 percent.
- KEI Industries has broken out the recent trading range this week on the support of above average volume activity.
- Technical indicators are giving positive signals as the stock is trading above the 20 week and 50 week SMA (Simple Moving Average). Apart from this, there is also a bullish trend in momentum indices like 14-day RSI (Relative Strength Index).
- The immediate and long term technical setup looks positive, due to which this stock can reach record highs in the coming trading weeks.
- Investors can buy in this stock at a target price of Rs 960 by placing a stop loss of Rs 770 at a price of Rs 820-832. Right now it is at a price of Rs 827.9.
Federal Bank- Buy
- About two months ago, in mid-July 2021, Federal Bank had reached a high of Rs 91. However, after this its correction started and in the very next month in August, it got a support level of Rs 77. This support level was formed for Federal Bank in May 2021 when it turned lower and was at the 200-day EMA (Exponential Moving Average). This means that this is a strong support level for Federal Bank.
- The stock has shown good momentum in the last few trading days and is now trading above the 20-day SMA.
- Momentum index like 14-day RSI is also showing a bullish trend.
- The immediate and long term technical setup is also looking positive, due to which the stock may see a rise in the coming trading weeks.
- Investors can buy this stock at a target price of Rs 94 by placing a stop loss of Rs 79 at a price of Rs 82-84. Right now it is at a price of Rs 83.45.
(Article: Subhash Gangadharan, Senior Technical & 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.)