The domestic markets held their strong opening gains on Monday as global sentiment turned positive on receding fears of aggressive rate hikes by the US Fed. The BSE Sensex was up 502.77 points or 0.94% at 54,263.55, and the NSE Nifty 50 was up 155.50 points or 0.97% at 16,204.70. Nifty started last week on a flat note and traded with extreme volatility on either side throughout the week. However Friday’s buying momentum recovered some of the earlier losses to close in negative terrain. According to analysts at Axis Securities, Nifty may trade in the range of 16,500-15,800 with a positive bias this week. “On the weekly chart the index has formed a “Doji” candlestick formation indicating indecisiveness amongst market participants regarding the direction,” they said.
According to the brokerage report, the chart pattern suggests that if Nifty crosses and sustains above 16,100 level it would witness buying which would lead the index towards 16,300-16,600 levels. However if the index breaks below 15800 level it would witness selling which would take the index towards 15,600-15,400. Meanwhile, Bank Nifty is expected to trade in the range of 35,500-34,000 with a positive bias. If Bank Nifty crosses and sustains above 35000, it would witness buying which would lead the index towards 35,400-36,000 levels. If the index breaks below 34,300, it would witness selling which would take the index towards 34,000-33,500, it added. The brokerage chose Bajaj Auto, Bharat Electronics, NOCIL, Galaxy Surfactants as its technical picks for the week.
Galaxy SurfactantsBuy Range: Rs 3045-2985; Stop loss: Rs 2,880; Holding period: 3-4 weeksUpside: 8-11%
On the weekly chart, the stock has observed one year “down-sloping trend line” breakout at Rs 2,970 levels indicating trend reversal. This breakout is accompanied with huge volumes indicating increased participation at breakout level, according to the Axis Securities report, “The daily “band Bollinger” buy signal indicates increased momentum. The stock is also well placed above 20, 50,100 and 200 day SMA which reconfirm bullish trend,” it said. Additionally, the daily and weekly strength indicator RSI signals positive crossover indicating rising strength. Charts suggest upside of Rs 3250-3360 levels.
Bharat ElectronicsBuy Range: Rs 245-241 Stop loss: Rs 233Upside: 7-13%
Daily chart shows that the stock has confirmed “symmetrical triangle” breakout around 242 levels on a closing basis. “The daily “band Bollinger” buy signals indicate increased momentum. The stock has recaptured its 20 and 50 day SMA’s and sustaining above the day SMA’s and sustaining above the same which reconfirm bullish sentiments. Rising volumes at breakout zone indicates increased participation,” the analysts said in the report. The daily and weekly strength indicator RSI also continues to remain bullish which signals sustained and rising strength. Technical analysis indicates an upside of 260-275 levels.
Bajaj AutoBuy Range: Rs 3880-3800; Stop loss: Rs 3,710; Holding period: 3-4 weeksUpside: 6-10%
According to Axis Securities’ analysts, Bajaj Auto stock on the weekly chart has formed a series of higher tops and bottoms on a weekly time frame representing up trend. “This buying momentum was observed from 100-week SMA support zone which reconfirm bullish sentiments. On the weekly line chart, the stock has witnessed “multiple resistance” breakout at 3880 levels. It is sustaining above its 20,50, 100 and 200 day SMA which supports rising trend,” they said. In addition, the daily and weekly strength indicator RSI is in bullish mode which supports rising strength. Technical charts suggest an upside of Rs 4085-4230 levels.
(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
