In a week marked by brisk trading, the Nifty has surged nearly 2 percent, reclaiming the coveted 19,800 zone by the end of the week. This rally owes its success to both technical and macro factors, with heavyweight stocks and the high-beta index Bank Nifty leading the charge and poised to maintain the momentum. The recent G20 Summit has further boosted market sentiment, contributing to the prevailing bullish outlook.
From a technical standpoint, the Nifty is now eyeing the 20,000 milestone, and given the ongoing momentum, it appears well within reach for the bulls. However, it’s essential to remain vigilant and exercise caution, patiently awaiting market dips to initiate fresh long positions.
In terms of support levels, 19,700 is the immediate support, followed by the crucial support zone of 19,600-19,500 in the near term. The overall market sentiment remains positive, making the “buy on dips” strategy a prudent approach. Additionally, keeping a close watch on both global developments and the domestic market overview is essential for setting the immediate trend.
Sectoral rotations are noticeable, with strong thematic movements that savvy investors should monitor for potential market outperformance.
Here are two short-term stock picks:
1. Central Depository Services (CDSL)
- Current Price (LTP): Rs 1,282.3
- Stop-Loss: Rs 1,218
- Target Price: Rs 1,395
- Expected Return: 8 percent
Central Depository Services (CDSL) has recently experienced a significant surge in both price and volume. The price chart reveals a breakout in the form of a ‘Cup and Handle’ pattern on the daily chart, bolstering a bullish outlook. Key technical indicators align with this price movement, indicating a potential upward trajectory for the stock.
We recommend buying CDSL in the range of Rs 1,270-1,280, with a stop-loss at Rs 1,218 and a target price of Rs 1,395.
2. Rain Industries
- Current Price (LTP): Rs 180.40
- Stop-Loss: Rs 172
- Target Prices: Rs 190-192
- Expected Return: 6.4 percent
Rain Industries has witnessed a strong uptrend, accompanied by robust trading volumes in recent sessions. The stock currently maintains its position above all its Exponential Moving Averages (EMAs) and has convincingly broken through the critical resistance level of Rs 170-172.
This bullish momentum is supported by a notable increase in average trading volumes. From a technical perspective, the stock appears well-positioned to continue its upward trajectory.
We recommend buying Rain Industries in the range of Rs 178-180, setting a stop-loss at Rs 172, and aiming for target prices of Rs 190-192.
These short-term stock picks offer promising opportunities for investors looking to capitalize on the current market momentum. However, as with any investment, it’s essential to conduct thorough research and consider your own financial goals and risk tolerance before making any investment decisions.