By Subash Gangadharan
Nifty 50 has been trending decrease for the previous couple of weeks and making decrease tops and decrease bottoms within the course of. And Nifty has been transferring decrease after the current breakdown from 16,824-17,415 buying and selling vary. Whereas we stay open to pullback rallies within the very close to time period, we anticipate the downtrend to proceed. Our quick time period bearish view would flip bullish provided that the Nifty manages to take out the highs of 17,133. Subsequently advocate a go-slow method on contemporary longs until we see indicators of sustainable energy.
The beneath picks are for the subsequent 15-26 buying and selling periods
Purchase Gujarat Fuel
Gujarat Fuel has proven relative energy this week. Whereas the Nifty index has misplaced 1.27% this week, Gujarat Fuel has gained 4.55% over the identical time interval. Within the course of, the inventory has additionally damaged out of its current buying and selling vary on the again of above common volumes.
Zooming into the day by day chart, we will observe that the inventory trades above the 20 day SMA. Day by day momentum indicators just like the 14-day RSI too are in rising mode and never overbought, which augurs nicely for the quick time period uptrend to proceed.
We due to this fact imagine the inventory has the potential to maneuver increased and take out its earlier intermediate highs within the coming weeks. We advocate a purchase between the 537-541 ranges. CMP is 539.35. Cease loss is at 502 whereas goal is at 600.
Purchase Axis Financial institution
After correcting from a excessive of 816 touched in April 2022, Axis Financial institution discovered assist on the 648 ranges in Could 2022. These are robust assist ranges as they correspond to earlier intermediate lows touched in December 2021.
On Wednesday, the inventory broke out of its current buying and selling vary. Momentum readings just like the 14-day RSI too have bounced again from oversold ranges and are in rising mode now.
With the intermediate technical arrange too trying optimistic, we imagine the inventory has the potential to maneuver increased within the coming weeks and due to this fact advocate a purchase between the 670-680 ranges. CMP is 675.85. Cease loss is at 655 whereas goal is at 710.
(Subash Gangadharan is a Senior Technical and Spinoff Analyst at HDFC Securities. Views expressed are the creator’s personal. Please seek the advice of your monetary advisor earlier than investing.)