By Subash Gangadharan
On the Daily chart, we observe that the NSE Nifty 50 has broken out of a downward sloping trend line that has held down the highs of 2021 and 2022. In the process, the index is now comfortably trading above the 20 and 50 day SMA. While uptrend is matured, momentum readings like 14-day RSI at 66.37 are still not very overbought, suggesting scope for more upsides. Thus, while there could be a minor correction in the very near term, we expect Nifty 50 to resume its uptrend after a minor correction. Crucial supports to watch for short term reversal are at 17959. Upside targets for the Nifty are the previous intermediate highs of 18351. The below picks are for the next 15-26 trading sessions
CMP: Rs 108.7 | Stop loss: Rs 103 | Target: Rs 125
Manappuram has been rallying higher for the last few weeks after finding support at the 90 levels. In the process, the stock has broken out of its recent trading range. Technical indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA and recently there was positive moving average crossover as the 20 day SMA moved above the 50 day SMA. Momentum readings like the 14-week RSI are in rising mode.
With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 106-110 levels..
Buy ICICI Securities
CMP: Rs 542.35 | Stop loss: Rs 500 | Target: Rs 600
ICICI Securities has been steadily climbing in the last few months after making a low of 411. The stock in fact made a double bottom around the same levels before moving higher. Last week, the stock broke out of the recent trading range on the back of above average volumes. The stock is now trading above the 20 day and 50 day SMA. And momentum readings like the 14-week RSI are in rising mode and not overbought, which implies potential for more upsides. With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 535-547 levels.
(Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. Views expressed are the author’s own.)