“Balrampur Chini has given a swing high breakout on the weekly chart, suggesting a rise in optimism. The weekly RSI is in bullish crossover with an indication of strong price momentum. Over the short term, the trend might take the stock towards Rs 570. Support on the lower end, is placed at Rs 500,” De says.
Edited excerpts from a chat:
Nifty has been largely stuck in a narrow trading range of 400-500 points for the last few days. After Friday’s upside, do you see signs of a fresh breakout on the upside?
Lately, Nifty has been moving within a range of 400-500 points, with boundaries at 24000 and 24400. Although on Friday, Nifty showed initial signs of breaking out from the recent consolidation, a follow-up rally is needed to confirm the continuation of the new uptrend. Therefore, Nifty might witness a decent rally in the near term only if it decisively moves above 24550; otherwise, it could fall back into consolidation once again.
Most of the upside in the market is being led by IT while banks are underperforming. Do you think the next leg of the rally could be led by Nifty Bank?
While the IT sector has the potential to continue outperforming the Nifty in the near term, Bank Nifty appears poised to catch up in the coming weeks after a period of underperformance. The individual charts of several banking stocks suggest a good recovery in the near term, which could fuel a rally in the Bank Nifty.
Inox Wind was among the top gainers of the week. How would you go about trading the stock in the coming days?
The stock has been consolidating prior to the recent rally in the stock. Over the near term, the stock might move higher once the consolidation ends. One can play a momentum bet by buying above Rs 220 keeping a stop loss below Rs 210. On the higher end, it might move towards Rs 250.
Ola has caught both positional traders as well as longer term investors off guard. Although it is a very short timeframe, would you hazard a look at the chart and tell us whether the stock is at overbought level?
Ola Electric has moved up significantly after listing on the back of interest from the investors, taking the stock more than 70% higher in just a few trading sessions. Now the stock might continue to move higher as long as it remains above Rs 117.
Sugar stocks are in focus as the government is said to be considering hiking the price of ethanol. And then we also have the Maharashtra assembly election coming up. Which sugar stocks are looking attractive from a trading play perspective?
Lately most of the sugar stocks are seen consolidating, barring Balrampur Chini and Triveni, and might remain in consolidation in the short term. On the other hand, Balrampur has given a strong breakout.
Give us your top trading ideas for the week?
Buy Balrampur Chini above Rs 525. Target price: Rs 550/570. Stop loss: Rs 500
The stock has given a swing high breakout on the weekly chart, suggesting a rise in optimism. The weekly RSI is in bullish crossover with an indication of strong price momentum. Over the short term, the trend might take the stock towards Rs 570. Support on the lower end, is placed at Rs 500.
Buy Tata Motors above Rs 1,100. Target price: Rs 1,160. Stop loss: Rs 1,069
The stock has given a consolidation breakout on the daily chart, suggesting a rise in optimism. The daily RSI has entered a bullish crossover with an indication of improving strength in price momentum. Over the short term, the trend might take the stock towards Rs 1160. Support on the lower end, is placed at Rs 1069.
Buy ICICI Lombard above Rs 2,045. Target price: Rs 2,200. Stop loss: Rs 1,974
The stock has moved above the recent consolidation on the daily chart, suggesting a rise in optimism. The daily RSI has entered a bullish crossover with an indication of improving strength in price momentum. Over the short term, the trend might take the stock towards Rs 2200. Support on the lower end is placed at Rs 1974.