Indian market snapped 3 weeks of winning streak and closed in the red for the week ended January 22. The S&P BSE Sensex and Nifty50 fell by about 0.4 percent each while the big fall was seen in the small & midcaps.
As we step into the final week ahead of the Budget, experts advise investors to remain cautious as it is the expiry week as well where traders will rollover their bets from the current January series to the February series.
“The Nifty50 is trading at overbought levels with the market is struggling to hold on to the current levels. Nevertheless, the Nifty continues to be in a bullish trend and is expected to continue with this trend unless it breaks the support level of Nifty 14,200,” Umesh Mehta, heads of research at SAMCO Group told Moneycontrol.
“A break below this level can also lead to a swath of investors who will look to book profits and can push the index as low as 13,100 levels. Hence, we believe that traders should tread cautiously from hereon,” he said.
Most experts see Nifty50 to close in the range of 14500 while on the downside 14200 is likely to act as a crucial support.
“We expect the Nifty50 to settle near 14,500 mark with strong support emerging near 14,200 levels. The index could climb towards the resistance mark near 14,700-14,750 on the upside,” Navneet Daga, Senior Derivatives Analyst – Institutional Equities, YES SECURITIES told Moneycontrol.
“Interestingly, India VIX remained still near lower band even in correction days that indicates trader’s expectation of a mild correction, and wild intraday gyration to continue,” he said.
Daga further added that a close below 14,200 on the Nifty50 is likely to fuel the expectation of a larger correction setting in for markets.
We have collated a list of stocks from various experts as short term trading strategies that investors could look at for the next 3-4 weeks:
Expert: Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors Ltd.
Tata Steel: LTP: Rs 646| Buy around Rs 640 | Target: Rs 740 | Stop Loss: Rs 585 | Upside: 14 percent
The stock has maintained a strong base near Rs 585-595 zone and the current sustainability above key moving averages have improved the bias with a positive candle formation on the hourly chart with higher highs-lows.
The RSI also has indicated a trend reversal to signal a buy. With the chart looking attractive, we suggest buying this stock around Rs 640 for a target of Rs 740, and a stop loss can be placed below Rs 585.
The stock is expected to give Cup and Handle breakout on the daily chart with decent volume. Bullish crossover in Stochastic and MACD are looking supportive for this upside breakout.
Positive crossover of 20 & 50 DMA's indicating strength. Key support lies at Rs 3,450-3,460 zone until this break decisively, a long position can be held.
Investors can take entry around Rs 3,600 level with a stop loss of Rs 3,440 on a closing basis for the target of Rs 3,900.
On the daily and the weekly charts, the stock is showing a retest of the neckline of its earlier reversal formation which is broadly positive.
The incremental volume activity post-breakout formation indicates further bounce back from the neckline. The stock is trading well above short-term as well as medium-term averages, which indicates that an uptrend wave is likely to continue in the near-term.
One can buy the stock around Rs 2,030 for the target of Rs 2,130, and a stop loss can be placed below Rs 1,970 mark.
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Expert: Sameet Chavan, Chief Technical & Derivatives Analyst at Angel Broking
Titagarh Wagons | Buy | LTP: Rs 55.70 | Target price: Rs 74 | Stop loss: Rs 44 | Upside: 33%
The way this stock has moved in the last 3–4 months, it looks quite promising. Irrespective of Budget, we like this counter at the current level and despite some tentativeness in the broader market, we recommend this counter.
The stock has traversed its 20-day EMA on the monthly chart for the first time after March 2018.
It is accompanied by the classic ‘bullish crossover’ in the combination of two key moving averages i.e. 5 and 20.
Hence, the mild profit-booking in the current month should ideally be used as a buying opportunity.
Traders are advised to accumulate this stock on a decline around Rs 53 to Rs 49.
IndusInd Bank | Sell | LTP: Rs 893 | Target price: Rs 860 | Stop loss: Rs 935 | Downside: 4%
The entire banking space nosedived last Friday. This stock was holding well throughout the first half but it finally succumbed to the selling in some of its larger peers.
Due to this negative rub-off, we witnessed a decent correction in the stock, breaching a few key levels.
If we look at the daily chart, we can clearly see a breakdown from the important swing lows around Rs 918. It closed convincingly below its 20-day EMA.
If the sell-off continues in the market, this high beta name would probably see some serious correction. Traders can look to sell the stock on a bounce towards Rs 900 - 910.
Expert: Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited
Biocon: Buy| LTP: Rs 393.80| Target: Rs 470| Stop Loss: Rs 350| Upside 19%
Biocon is currently moving in an uptrend channel. It has recently corrected to its lower band of the uptrend channel.
We recommend a buy with a target of Rs 470, and a stop loss can be placed below Rs 350 for a medium-term perspective.
Cipla: Buy| LTP: Rs 808| Target: Rs 880| Stop Loss: Rs 767| Upside 9%
CIPLA has been trading in an upward trending channel. It has been trading above 200 DMA that indicates a positive outlook on the stock.
We recommend a buy on CIPLA above Rs 825, for a target of Rs 880, and a stop loss can be kept below Rs 767 for a short-term period.
PVR: Buy| LTP: Rs 1519| Target: Rs 1650| Stop Loss: Rs 1440| Upside 8%
PVR is recovering after a downtrend and has posted a breakout from the ascending triangle price formation. We recommend a buy above Rs 1515 for a target of Rs 1650 from a medium-term perspective, and a stop loss can be placed below Rs 1,440 on a closing basis.
Brokerage: SMC Global SecuritiesTCS: Buy| LTP: Rs 3303| Target: Rs 3550| Stop Loss: Rs 3140| Upside 7%
The stock closed at Rs 3303.10 on 22nd January 2021. It made a 52-week low at Rs 1506.05 on 13th March 2020 and a 52-week high of Rs. 3327.95 on 20th January 2021.
The 200-days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 2542.96.
The short-term, medium-term, and long-term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts which is bullish in nature.
Apart from this, it has formed a “Bull Flag” pattern on the daily chart and has given the breakout of same during the last week, closed above the same so buying momentum may continue for coming days.
Therefore, one can buy in the range of 3270-3280 levels for the upside target of3500-3550 levels with a stop loss placed below 3140.
TVS Motor: Buy| LTP: Rs 522| Target: Rs 570| Stop Loss: Rs 480| Upside 9%
The stock closed at Rs 521.95 on 22nd January, 2021. It made a 52-week low of Rs 240.10 on 07th April, 2020 and a 52-week high of Rs. 535 on 22nd January, 2021.
The 200-days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 450.26.
After registering a yearly low of 240 in early April, 2020, the stock recovered sharply and formed an “Inverted Head and Shoulder” pattern on weekly charts and trading higher.
From past few weeks, the stock has consolidated in a narrow range with a positive bias, has given the breakout of consolidation with high volumes and also closed with positive bias so further upside is expected in coming days.
Therefore, one can buy in the range of 510-515 levels for the upside target of 560-570 levels with a stop loss below Rs 480.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions."Trading" - Google News
January 25, 2021 at 11:03AM
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