Stock Tips: There is a weak trend regarding the market right now, but investors can earn up to 14 percent profit within a month by investing in these two individual stocks.
Nifty Outlook: The Nifty 50 is showing a correction for the last few weeks. The downside trend was confirmed when Nifty broke the support level of 17613, despite the recent rally on the daily chart, the domestic equity benchmark index is showing signs of a downside trend. Nifty has been making lower top and lower bottom continuously for the last few weeks, due to which the chances of it crossing the recent high of 17490 are looking less. Apart from this, the 20-day SMA (Simple Moving Average) is consistently below the 50-day SMA, indicating a negative moving average crossover. Apart from this, the weekly momentum indicator like 14-week RSI (Relative Strength Index) is also showing a declining trend.
If Nifty breaks the support level of 16782 then it can see a sharp decline. However, if Nifty crosses the level of 17640, then the downside trend may reverse. Talking about individual stocks, investors can earn handsome profits by investing in PI Industries and Sun Pharma in the next 15-26 trading days.
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PI Industries
- PI Industries has shown relative strength this week. The Nifty index declined 1.72 per cent this week but PI Industries has gained 5.47 per cent in the same period. Meanwhile, the stock has broken the recent trading range on the back of healthy volumes.
- Technical indicators are giving positive signals as its prices are above the 20 and 50 days SMA. Daily Momentum Indicators like 14-day RSI have also gained momentum and are continuing to strengthen, indicating a continuation of the stocks.
- Due to all this, the prices of PI Industries may strengthen in the coming trading days. Investors can invest in it at the current price of Rs 3075. If its prices break, then the number of shares can be increased if the price falls by Rs 3060-3090. Investors can invest in this by placing a stop loss of Rs 2900 at the target price of Rs 3500.
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Sun Pharma
- Sun Pharma is also showing a bullish trend as it has been making higher top and bottom for the last few months.
- Technical indicators are giving positive signals as the stock is trading above the 20 and 200 day SMA. Daily Momentum Indicators like the 14-day RSI have also seen a jump and it is consolidating continuously, giving the possibility of a bullish trend in its price.
- Investors can invest money in this stock at the current price of Rs 777 at a target price of Rs 850. However, it would be better to keep a stop loss of Rs 743. If its prices break down, then you can increase the number of shares in the portfolio up to the level of Rs 770-780.
(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.)
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