Nifty Outlook: Domestic domestic benchmark indices closed down from record highs on Tuesday and then declined on Wednesday the next day. However, the market is showing signs of a sharp recovery due to the formation of a long bear candle on the daily chart. The recent peak of Nifty can be considered 18604 short term top formation. There was a bullish trend in the market for the last two months and then there was a trade of correction for two to three trading days. According to this pattern, there has been a decline for two days and now today or tomorrow i.e. on Friday, it can see an uptrend.
Nifty is showing a bullish trend today on October 21, but till the market closes, nothing can be said with certainty in which direction it is moving. However, right now the Nifty may remain sluggish for one to two trading days and then it may see a bounce. There is important support for Nifty at the level of 18150-18100 below. Talking about individual stocks, investors can earn up to 11 per cent profit in the next three to four weeks by investing in Bharti Airtel and Mazagon Dock Shipbuilders.
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Buy Bharti Airtel Ltd (Wednesday closing price – Rs 708.10)
- According to the weekly timeframe for the last two months, its price has a bullish trend. It is forming higher top and bottom on the weekly timeframe chart which is positive for the stock.
- For the last two weeks, this stock had a sideways range movement but now it is ready for an upside movement.
- Weekly RSI (Relative Strength Index) and ADX (Average Directional Movement Index)/DMI (Directional Movement Index) are also giving positive signals.
- Its shares can be bought at the current price and if it slips to the price of Rs 680 then instead of panic
- The number of its shares in the portfolio should be increased further. In the next three to four weeks, it can touch the level of Rs 780. A stop loss of Rs 660 should be kept for investment.
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Buy Mazagon Dock Shipbuilders Ltd (Wednesday Closing Price – Rs 272.50)
- According to the weekly timeframe chart, the stock has gradually strengthened amid a limited range of volatility and is now showing signs of further upside. On Thursday, it has broken the resistance level of Rs 275 in intra-day. If it remains above this, then further strength can be seen in its price.
- Its weekly RSI is above 60 indicating bullish signs.
- Investors can buy this stock at the current price and if there is a slippage, then they can increase the number of shares up to Rs 262. For the next three-four weeks, investors can invest in it with a stop loss of Rs 254 and a target of Rs 300.
(Article: Nagraj Shetty, Technical Research 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.)