Outlook for Nifty
In the short term, there is seen a positive trend for the NSE index and in the coming sessions one may expect further upmoves. Consequently, in the next 1-2 weeks, one may watch out for 13900-14000 levels on the Nifty with immediate support placed at 13580.
And hence as the Nifty is likely to gain more in the coming weeks, HDFC Securities’ Technical Research Analyst has suggested two stocks:
1. Torrent Pharmaceuticals- Buy- Target Price-3065 CMP Rs 2788)
As per the weekly chart, there is suggested an attempt of upside breakout after trading sideways over the past one month. The counter is attempting to move above crucial overhead resistance of intermediate down trend line at Rs 2770 levels. And so a movement above this level could result in a sharp positive impact on the pharma scrip going forward.
Weekly 14 period RSI is kept below 60 levels and volume has started to surge along with the upmove in the stock price. For buying the counter, the analyst suggest a price of Rs. 2788, add more on dips down to Rs. 2680 and sees a target price of Rs. 3064 in the next 1 month or so. Stop loss for the counter should be placed at Rs. 2590.
2. HEG Ltd Buy Target price-Rs. 960
For the electrode and graphite company, the weekly timeframe chart suggest a rangebound movement. There has been seen price movement in the scrip in a narrow band with a formation of consistent higher lows. There is further witnessed an attempt of upside breakout of down sloping trend line at Rs 875-880 levels in the scrip.
A sustainable move above this trend line resistance might possibly trigger a sharp uptrended move. Weekly 14 period RSI is turning up from near 57-58 levels and its move above the upper 60 will strengthen upside momentum in the near term.
The scrip of HEG Ltd can be bought at a CMP of Rs. 868.40, and accumulated on dips down to Rs. 830 for a upside target of Rs. 960 in the next 3-4 weeks.
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