Buy These Two Stocks For Gains As Nifty 50 Prepares To Retest Lifetime Peak

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e Nifty may now attempt to retest its current living standards of 17,793 over the next few sessions.

Through Subash Gangadharan

Nifty recently corrected from a high of 17793 seen last Friday. The index did find support at lower levels, however, and managed to hold above the crucial short-term trend reversal levels of 17254. The rebound on Tuesday led the Nifty to close above the MA of periods 20 and 50 on the 15 minute chart, indicating that the very short term trend has turned positive.

On the daily chart, the Nifty recently hit higher lows at 16565, 17055 and 17254 and continues to trade above a 20- and 50-day SMA ascending slope, proving that the intermediate uptrend is intact. The Nifty may now attempt to retest its current living standards of 17,793 in the coming sessions.

The choices below are for the next 15-26 trading sessions

Buy Apollo tires

Apollo Tires has shown relative strength this week. While the Nifty index lost slightly, this stock rose 3.94%. In the process, the stock also broke out of its recent trading range due to above-average volumes.

Technical indicators are giving positive signals as the stock trades above the 20 and 50 day SMA. Daily momentum indicators like the 14 day RSI have also rebounded and are now in bullish mode, which bodes well for the continuation of the uptrend.

With the intermediate technical setup looking positive, we believe the stock has the potential to move up and out of its previous intermediate highs in the coming weeks and therefore recommend a buy between the 230-234 levels. The CMP is 232.4. The stop-loss is at 214 while the targets are at 274.

Buy Kiri Industries

After correcting a high of 679 reached in June 2021, Kiri Industries found support at the 461 levels in August 2021. These levels correspond to the previous intermediate lows of the stock tested in June 2021, making it strong support.

The stock has rebounded well in recent weeks from these supports and hit a lower low. The stock is trading above the 20 and 50 day SMAs and momentum readings like the 14 day RSI are also in a bullish mode which is encouraging.

With the medium to long term technical setup looking positive, we believe the stock has the potential to rise in the coming weeks and therefore recommend a buy between the 536-541 levels. The CMP is 538.95. The stop-loss is at 495 while the targets are at 640.

(Subash Gangadharan is Senior Technical and Derivatives Analyst at HDFC Securities. The opinions expressed are those of the author. Please consult your financial advisor before investing.)

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