By Subash Gangadharan
Markets slid down additional this week earlier than recovering sharply from the lows. The bounce-back occurred from near the 200 day EMA. Selling strain once more seen on Wednesday ensured it was a unfavorable and risky week. On the Daily chart, we observe that 200 day EMA has acted as a help through the latest fall as Nifty bounced again strongly from there. But quick time period development nonetheless stays down because the Nifty has didn’t fill the latest hole space and cross the latest swing highs. 14-day RSI too is in decline mode, indicating extra quick time period weak spot is feasible.
The draw back goal is at 16858 (200 day EMA) as soon as the help of 16958 is damaged. We anticipate shopping for to emerge from these help ranges. In the approaching weeks, the Nifty may due to this fact commerce in a spread between the 16800-17500 ranges. Our view would flip mistaken if the Nifty breaks the 200 day EMA at present at 16858.
The under picks are for the following 15-26 buying and selling classes
Buy Apollo Tyres
Target: Rs 240
Apollo Tyres has proven relative power this week. While the Nifty index has misplaced 0.78% this week, Apollo Tyre has gained 5.13% over the identical time interval. In the method, the inventory has additionally damaged out of its latest buying and selling vary on the again of above-average volumes.
Zooming into the day by day chart, we will additionally observe that the 20 day SMA has not too long ago crossed above its 50 day SMA, indicating a optimistic transferring common crossover. The inventory can also be buying and selling above the 20 week SMA and weekly momentum indicators just like the 14-week RSI too are in rising mode and never overbought, which augurs effectively for the intermediate uptrend to proceed.
We, due to this fact, consider the inventory has the potential to maneuver larger and take out its earlier intermediate highs within the coming weeks. We suggest a purchase between the 208-212 ranges. CMP is 210. Stop-loss is at 195 whereas goal is at 240.
Buy Dr. Lal PathLabs
Target: Rs 3050
Dr. Lal PathLabs has not too long ago reversed its quick time period downtrend when it crossed its earlier swing excessive of 2843 not too long ago. After taking a breather, this week the inventory has once more began rising and is now on the verge of taking out its latest highs.
Technical indicators are giving optimistic indicators because the inventory trades above the 20 day and 50 day SMA. Weekly momentum indicators just like the 14-week RSI have bounced again and are in rising mode now.
With the intermediate technical setup wanting optimistic, we consider the inventory has the potential to maneuver larger within the coming weeks and due to this fact suggest a purchase between the 2780-2820 ranges. CMP is 2799.85. Stop-loss is at 2680 whereas goal is at 3050.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC securities. Views expressed are the creator’s personal. Please seek the advice of your monetary advisor earlier than investing.)
Source: www.financialexpress.com”