By Subash Gangadharan
On daily chart, we observe that Nifty has bounced back after finding support near the previous swing lows of 17774. On Wednesday, the Nifty took out the previous swing high of 18141, thereby entering into a new short-term uptrend. Technical indicators too are giving positive signals as the Nifty is now trading above the 20-day SMA and the 14-day RSI at 52.14 is not overbought and is climbing higher after making a higher bottom. Nifty could now move towards the 50-day SMA at 18288. A move above that could lead to further upsides.
Kansai Nerolac Paints: Buy
Kansai Nerolac Paints has recently bounced back from the support of 401. The stock had previously found support around the same levels in August 2022. This indicates that the 401 levels is a strong support and is likely to hold for a while. On Wednesday, the stock has broken out of its recent 5-day trading range as can be seen from the 60 minute chart. The 14-day RSI is in rising mode and not overbought, implying potential for more upsides. With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 415-424 levels. CMP is 419. Stop loss is at 403 while target is at 450.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)