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5 technical stocks to buy: Nifty may hit 15500, Sensex seen at 53,000 in next 3-6 months

5 technical stocks to buy: Nifty may hit 15500, Sensex seen at 53,000 in next 3-6 months
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5 technical stocks to buy: Nifty may hit 15500, Sensex seen at 53,000 in next 3-6 months

5 technical shares to purchase: Nifty might hit 15500, Sensex seen at 53,000 in subsequent 3-6 months

sensex, nifty, airtel, ambuja cementsCement shares did extraordinarily properly, which had by no means occurred within the final 10 years, indicating that core economic system knowledge is both enhancing or going to enhance

By Shrikant Chouhan

Technically, at current the market is following the sample of the rally between 2001 to 2008.  It may very well be 10 instances within the subsequent 7 to eight years. The Nifty was at 7500 throughout Covid19 disaster and the Sensex was at 25700. Nifty has the potential to maneuver as much as 75,000 and Sensex to 2,57,000 factors. Within the subsequent 3-6 months, we anticipate the Nifty to achieve 15,500 and Sensex at 53,000 ranges.

Throughout the pandemic (2020), markets fell to excessive worry ranges throughout the globe. Now the time has come for the markets to maneuver to the acute “Grasping ranges”. The “sectoral rotational exercise” has began which was lacking between 2008 to 2020  FIIs are investing considerably since June 2020 which might help the rise in rupee. Cement shares did extraordinarily properly, which had by no means occurred within the final 10 years, indicating that core economic system knowledge is both enhancing or going to enhance. 

Between 1992 to 2001, Sensex moved from 2000 (lowest) to 6000 (highest) ranges, which posted respectable returns, nonetheless, the rally was fully gradual and extremely risky. It was the hardest job for each participant (Fund Managers to Retail) to seize main strikes.

Nevertheless, between 2001 to 2008 it was flourishing for everybody. Each particular person and company made large cash because the rally was constant and fewer risky. BSE Sensex moved from 2,000 to twenty,000 (10 instances). Whereas Nifty 50 raced from 850 to 6350 (8 instances) ranges. Equally, from 2008 to 2020, the Nifty 50 rose from 2250 to 12000 (6 instances) ranges and Sensex from 7700 to 42000 (6 instances) ranges. It was but once more gradual and extremely risky. It was the hardest job for each market participant to gauge the temper. 

Based mostly on the above correlation our stance, one should purchase on each main dips. Assist for the market exists at 14000 and 13000 ranges. 

AMBUJA CEMENTS (BUY): The inventory is forming greater high greater backside sequence on a weekly and month-to-month foundation.  It has not too long ago damaged consolidation triangle formation at 225 and recovered again sharply.  Technically, the inventory is able to surpass the extent of 291.50, which is the all-time highest stage for the inventory.  Purchase in tranches with a cease loss at 225.  On the upper facet, we may see the degrees of 290 and 300.  

JINDAL STEEL & POWER (BUY): The inventory has fashioned and validated to the formation of a double backside.  Based mostly on it we may see the degrees of 350 on the minimal and 550 on the utmost facet. The metallic index 700 factors away from the all-time highest ranges, which it has fashioned within the yr January 2018.  We’re of the view that the index is able to surpass the all-time highest ranges and that may generate extra gasoline in excessive beta shares like JSPL. Purchase at present ranges and extra on dips with a remaining cease loss at 270.  

BHARTI AIRTEL (BUY): The inventory is in long run escape.  It has damaged multiyear resistance at 500.  Though the inventory was down within the second half of the yr it recovered again and regained the extent of 500 plus.  We’re of the view that the inventory is heading for 700 within the medium time period.  It’s a purchase at present and extra on dips with a remaining cease loss at 530. 

BALRAMPUR CHINI MILLS (BUY): It has spent 14 yr throughout the buying and selling vary of 202 and 29. Presently, the inventory is buying and selling at 183 ranges and within the strategy of crossing the extent of 202 based mostly on it’s formation of rounding backside on the month-to-month chart.  Technically multiyear escape of the buying and selling vary helps the inventory to maneuver additional greater. Even when we undergo with shares associated to agriculture exercise, then we are able to discover that the majority of them have already entered in the long run breakout, which is optimistic for the inventory.  The technique needs to be to purchase at present ranges and extra on dips as much as 170 with a remaining cease loss at 160.  On the upper facet 200 and 225 appears achievable. 

TATA MOTORS (BUY): Every day, the inventory is in sturdy uptrend, whereas it’s within the pullback mode on a month-to-month chart.  It was at 605 ranges within the yr 2016 and went to 63.50 ranges through the interval of Covid19. After crossing the extent of 200, we noticed a vertical up transfer within the inventory.  It has given a value and quantity based mostly breakout, which is important and together with optimistic information move for the inventory on a home and worldwide foundation. Even when we take into account 50% retracement from the decrease ranges then it may attain 330 ranges. The technique needs to be to purchase at present ranges and extra on dips to 225 ranges within the anticipation of assist to {the electrical} automobile business.  Hold a cease loss at 200 for a similar. 

(Shrikant Chouhan is Govt Vice President – Fairness Technical Analysis at Kotak Securities. The views expressed are private. Please seek the advice of your monetary advisor earlier than investing)

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