Market

Charts show support for these two stocks as Nifty looks to be headed towards new highs

Technical indicators too are giving optimistic indicators for the brief time period as the Nifty has moved above the 20-day SMA.

By Subash Gangadharan

After touching a low of 11185 and discovering support shut to the 50-day SMA, the Nifty has rallied neatly in the previous couple of classes and crossed the earlier swing highs of 11585. It has subsequently reversed the latest downtrend and entered right into a new uptrend. Technical indicators too are giving optimistic indicators for the brief time period as the Nifty has moved above the 20-day SMA. The 14-day RSI too is in rising mode, indicating that momentum is choosing up.

Given the power and support of the varied sectors which have helped to push the Nifty index increased, there’s a good chance that the Nifty may now be headed towards the subsequent main intermediate highs of 11794 within the close to time period. Any corrections are doubtless to discover support across the 11400 ranges.



Buy Mahindra & Mahindra

After consolidating for a number of classes between the 610-630 ranges, M&M broke out of this vary on Wednesday on the again of giant volumes. With the intermediate and long run technical patterns wanting optimistic on the charts, this augurs nicely for the uptrend to proceed. Technical indicators too are giving optimistic indicators as the stock trades above the 20-day SMA and 50-day SMA. The 14-day RSI too is in rising mode.

We subsequently suggest shopping for M&M between 630 and 640. CMP is 638.35. Targets are at 700, whereas cease loss is at 610.

Buy Dr Reddy

Dr Reddy has damaged out of the 4320-4482 buying and selling vary on Tuesday on the again of giant volumes. With the 50-day SMA offering support to the stock and the every day and weekly technical set ups wanting optimistic, we anticipate extra upsides for the stock within the coming classes.

Momentum readings just like the 14-day RSI too is in rising mode and never overbought. We subsequently suggest shopping for Dr Reddy between 4550 and 4650. Targets are at 5010, whereas cease loss is at 4470. CMP is 4640.

(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. The views expressed are the creator’s personal. Please seek the advice of your funding advisor earlier than investing.)

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