Stock Tips: In the last two trading days, the NSE Nifty 50 traded in a modest range and it had reached a record high of 16722.05 on August 27. Talking about today 30th August, Nifty has touched a new record level beyond 16800 in the early trade itself. Bull control is visible on Nifty at this time i.e. it is likely to remain bullish even further. The index is currently trading at a daily interval of 21 days exponential moving average. Talking about the last trading week, the resistance of Nifty was 16950-17000, which it has broken today. The support level of Nifty is 16400-16300.
On the other hand, if we talk about Bank Nifty, the last week was volatile and it was trading in the range of 1000 points and closed with a gain of 1.70 percent compared to the previous week. Nifty Bank is trading in a rectangular pattern in the Daily Time Frame and has managed to close above the Exponential Moving Average on Days 21 and 50. Most of the indicators and oscillators are showing signs of negative trend in the banking index. Momentum Oscillators RSI (14) is showing weakness near 55-65 and there are clear signs of sideways trading range in banking stocks in the weekly time frame. Nifty Bank may face resistance at upper level at 36300-36400 and its support level is currently at 34800-34600. Investors can earn up to 11 percent profit by investing in three stocks including a banking stock like HDFC Bank.
HDFC BANK: BUY
CMP: Rs 1548.45
Target RS 1635 | Stop Loss Rs 1500 | Return 05.62%
For the last four months, the stock was trading in a symmetrical triangle formation and formed a trend line resistance at Rs 1530 level. After this, it broke this symmetrical triangle pattern at the level of Rs 1558 on 24th August and now there is a possibility of its upside movement from the sideways. The stock is currently trading on the 21, 50 and 100 day exponential moving averages in the daily time frame, which is positive for the price in the near term. The MACD indicator is above the centerline with a positive crossover above its signal line. 14 Days Momentum Oscillator is above 60 and due to this the stock is likely to remain bullish.
ABB INDIA: BUY
CMP: Rs 1850
Target Rs 2050 | Stop Loss Rs 1790 | Return 11%
Swing trade setup is visible in ABB India and it can give returns of 11 per cent to the investors. ABB India has broken the level made for many years and there is a possibility of further growth in it. Coming to the price setup, the stock looks promising due to the good trading volume coupled with a large green candle. Coming to the indicator, MACD (Moving Average Convergence Divergence) has shown a positive crossover on the daily chart and ADX (Average Directional Movement Index) is showing a reading of 22 with a rising trend. The 14-day RSI (Relative Strength Index) on the daily chart is at around 67, indicating the possibility of a rise in this stock.
CMP: Rs 3941
Target Rs 4220 | Stop Loss Rs 3783 | Return 07%
Last year in March 2020, Britannia had slipped to a low of Rs 2100 but after that it recovered sharply and in just four months it gave 90 per cent returns to investors. On 24 July 2020, its prices reached the level of Rs 4010. However, it declined after that. Talking about the last trading week, it broke the one year long consolidation pattern and reached a 52-week high of Rs 3967.50. Nifty FMCG index has also broken the zone of eight weeks, due to which there is a possibility of a rise in it. On the Daily chart, the stock has formed a W pattern followed by a double bottom pattern near the Rs 3400 level. It is below the 200-day exponential moving average of Britannia.
(Article: Rohan Patil, Technical Analyst, Bonanza Portfolio)
(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.)