Top 10 Bets When Bulls Rule the Street, Benchmarks Reach Uncharted Territories

Bulls took full control of Dalal Street since later last week and pushed the benchmark indices into uncharted territory on June 30 as we have seen buying across sectors with strong gains from banking and financial services and technology stocks.

The Nifty50 has seen a breakout of the uptrend resistance near the previous record highs (Oct 2021 and Dec 2022) at the very opening on Friday and remained above the same throughout the session. The index jumped 2.8 percent to close at a record close of 19,189 and formed a strong bullish candlestick pattern on the weekly charts, holding higher highs for the 14th consecutive session.

Even the momentum indicator RSI (Relative Strength Index) produced a bullish crossover in all timeframes, which is a positive sign. Hence, the index is likely to move towards 19,300-19,500 levels in the coming days, while holding the 19,000 mark, which is an immediate support, then 18,800 levels, experts said.

“Price-wise, we can clearly see a ‘V’ pattern configuration that has been broken to the upside. Its theoretical target is much higher, but we remain bullish on the market in the short to medium term,” said Samit Chavan, head of technical and derivatives research at Angel One head of department.

As for levels, he believes the Nifty may move towards 19,350-19,500 in the coming week. However, one has to be very selective going forward as the low-hanging fruit is gone for momentum traders, he suggested.

In the interim, “we may see a profit-booking attack, but the directional deviation is still very sharp until 18,600 is breached. Before that, 19,000 followed by 18,800 should be considered as key supports,” Summit said.

Looking ahead, Arvinder Singh Nanda, Senior Vice President, Master Capital Services, also believes that Nifty prices seem poised to continue their upward trajectory towards 19,400 and 19,500 levels. Any downside correction, around the 19,000 mark, could create an opportunity to initiate new long positions, he said.

Here are the experts’ top 10 trading ideas for the next three to four weeks. Returns are based on June 28 closing prices:

Expert: Subash Gangadharan, Senior Technical & Derivatives Analyst, HDFC Securities

Biocon: Buy | LTP: Rs 265.50 | Stop-Loss: Rs 238 | Target: Rs 320 | Return: 20.5 percent

After correcting from the average high of Rs 295 tested in November 2022, Biocon found support around Rs 191 in March 2023. These are strong supports as they also roughly match the previous average lows.

Since then, the stock has moved higher and is making higher bottoms in the process. The stock also broke out of its recent trading range this week on volume above its averages, indicating that it will move higher in the coming weeks.

Technical indicators give positive signals as the stock trades above the 20 and 50 day SMA (small moving average). Also, momentum readings such as the 14-week RSI (Relative Strength Index) are in a bullish mode and not overbought, indicating potential for further upside.

As the intermediate technical setup looks too attractive, we expect the stock to move higher towards the previous intermediate highs in the coming weeks. Buy Rs 263-267 levels with stop-loss at Rs 238 and target Rs 320.

Bank of India: Buy | LTP: Rs 292.55 | Stop-Loss: Rs 276 | Target: Rs 320 | Return: 9.4 percent

Indian Bank showed relative strength last week. While the Nifty gained 2.8 percent last week, Bank of India has gained a healthy 5.42 percent. In the process, the stock has closed above its recent trading range on above-average volumes, suggesting the uptrend will continue.

Technical indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA. Momentum readings such as the 14-week RSI are also in a bullish mode and are not overbought, indicating further upside potential.

As the intermediate technical setup looks too attractive, we expect the stock to move higher towards the previous intermediate highs in the coming weeks. Buy between Rs 290-294. The stop-loss price is Rs 276 and the target is Rs 320.

Indiabulls Housing Finance: Buy | LTP: Rs 123.4 | Stop-Loss: Rs 113 | Target: Rs 140 | Return: 13.5 percent

After touching a low of Rs 91.8 in March 2023, Indiabulls Housing Finance has gradually climbed higher and touched higher and lower prices. There has also been a moving average crossover in the process as the 20-day SMA has crossed the 50-day SMA.

This positive signal, combined with the fact that the stock also closed above the 200-day EMA on Friday due to above-average volume, bodes well for a continuation of the uptrend. Intermediate momentum readings such as the 14-week RSI are also in bullish mode and not overbought.

As the intermediate technical setup looks too bullish, we believe the stock has the potential to go higher in the coming weeks. Recommend a buy between Rs 121-125, with a stop-loss price of Rs 113 and a target of Rs 140.

Expert: Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities

Axis Bank: Buy | LTP: Rs 987.45 | Stop-Loss: Rs 940 | Target: Rs 1050-1150 | Return: 16.5 percent

The stock is in a long-term breakout stage. In the medium term, the stock corrected to retest the breakout level of Rs 820. However, it soon bounced back and set a new all-time high, missing other banks.

The stock is doing well and heading towards Rs 1050 and Rs 1150 levels in the coming weeks or months. The strategy should be to buy 50 percent at the current level and the rest at Rs 965. For this, keep a stop-loss at Rs 940.

LTIMindtree: Buy | LTP: Rs 5197.20 | Stop-Loss: Rs 5050 | Target: Rs 5500-5800 | Return: 11.6 percent

The stock has formed an ascending triangle after falling from a high of Rs 7,588. It is a base building and a rejection of Rs 5050 on monthly and quarterly closes above it will trigger a rally to Rs 5800 with key resistance at Rs 5500.

In the short term, the strategy should be to buy at Rs 5,200 and place a stop-loss at Rs 5,050.

Century Textiles and Industry: Buy | LTP: Rs 861.5 | Stop-Loss: Rs 770 | Target: Rs 1025 | Return: 19 percent

By closing above the Rs 850 level, it has completed a corrective pattern on the long-term chart, which will pull the stock towards the Rs 1,025 low. At the maximum level it seems possible to get Rs.1200.

However, to get a better reward for the risk, traders should buy the stock in two parts. The first part should be bought at the current price and the second part at Rs 800. Place a stop-loss at Rs 770 for the target.

Expert: Ruchit Jain, Lead Researcher at 5paisa.com

Axis Bank: Buy | LTP: Rs 987.45 | Stop-Loss: Rs 955 | Target: Rs 1020-1045 | Return: 6 percent

This stock has formed a “Higher Top, Higher Bottom” structure and is trading in an ascending channel. The 20-DEMA has acted as support for corrections and the stock appears to have resumed its upward move from its support zone.

Thus, positional traders can buy the stock in the range of Rs 990-980. Stop-loss for long positions should be placed below Rs 955, while targets could be around Rs 1020 and Rs 1045.

Amara Raja Batteries: Buy | LTP: Rs 681 | Stop-Loss: Rs 648 | Target: Rs 720-740 | Return: 8.6 percent

The stock has seen a gradual uptrend in recent weeks and has now broken above the previous swing in Friday’s session. The breakout has been supported by higher volumes than the daily averages and the RSI (Relative Strength Index) oscillator is showing positive momentum.

Hence, traders can buy this stock in the range of Rs 682-675 to reach Rs 720 and Rs 740 in the near term. Stop-loss long positions should be below Rs.648.

Expert: Mitesh Karwa, Research Analyst, Bonanza Portfolio

Century Plyboards: Buy | LTP: Rs 662.8 | Stop-Loss: Rs 630 | Target: Rs 705 | Return: 6.4 percent

The stock has broken out of a descending parallel channel pattern on the weekly time frame with a bullish candlestick above the nine-month highs, indicating bullish strength.

On the indicator front, the supertrend indicator indicates a bullish continuation trend that can be used as a confluence on a bullish view. The Ichimoku cloud also indicates bullish movement as the price trades above the conversion line, baseline and cloud.

The Momentum Oscillator RSI (14) is around the 72-day time frame, indicating strength, holding above 50.

Observing the above factors suggests that a bullish move is possible for Century Plyboards towards a target of Rs.705. A buy trade can be initiated in the range of Rs 656-661 with a stop-loss of Rs 630 daily.

Escort Kubota: Buy | LTP: Rs 2248 | Stop-Loss: Rs 2200 | Target: Rs 2310 | Return: 3 percent

Escort has seen a breakout from a large inverted head and shoulders pattern on the daily time frame using a candlestick and above-average volumes, and the stock is also trading above important 20/50/100/200 EMAs, indicating strength.

On the front of the indicator, the momentum oscillator RSI (14) is around 65 on the day time frame, indicating strength, staying above 50, and the Ichimoku cloud is also showing bullish movement as price trades above the conversion line, baseline and cloud. for the daily schedule.

Observing the above factors suggests that a sharp move is possible in the Escort group towards the target of Rs 2310. A buy trade can be initiated between Rs 2,243 and Rs 2,248, with a stop-loss of Rs 2,200 daily.

Vesuvius India: Buy | LTP: Rs 2399.55 | Stop-Loss: Rs 2320 | Target: Rs 2550 | Return: 6 percent

Vesuvius has seen a breakout from the symmetrical triangle pattern on the daily time frame with a bullish candlestick and above average volumes, adding to this the RSI indicator is showing a bullish divergence which can be used as a confluence to a bullish view.

The supertrend indicator also indicates a bullish continuation, which supports the bullish view. Momentum oscillator RSI (14) is around 65 on the day time frame, indicating strength, holding above 50. The Ichimoku cloud also indicates bullish movement as price trades above the conversion line, baseline and cloud.

Observing the above factors suggests that a bullish move is possible in Vesuvius with a target up to Rs 2550. A buy trade can be initiated in the range of Rs 2,394-2,399 with a stop-loss of Rs 2,320 daily.

Disclaimer: The opinions and investment advice expressed by investment experts at Moneycontrol.com are their own and not those of the site or its management. Moneycontrol.com recommends that users consult certified experts before making any investment decisions.

#Top #Bets #Bulls #Rule #Street #Benchmarks #Reach #Uncharted #Territories

Leave a Comment