By Subash Gangadharan
The daily timeframe indicates that with Nifty bouncing back strongly last Friday and continuing to move higher on Wednesday on the back of positive market breadth and outperformance from broad market indices, the odds seem higher for more upsides.
Nifty could however consolidate or witness a minor correction in the near term. The immediate upside target for Nifty is at the recent swing high of 24538. Further upsides are likely once these highs are taken out.
We must however remember that the intermediate trend is still down and therefore current pullback rally may not last very long. Bank Nifty, IT, PSU Bank and Realty indices are currently the strongest sectoral indices.
Buy Indian Energy Exchange – (CMP Rs 172.9)
After a recent fall, IEX has found support near the previous swing low of 159. The stock has bounced back well in the last few sessions on the back of healthy volumes, which augurs well for the uptrend to continue.
The stock also trades above the 20-day SMA. And the momentum indicators like the 14-day RSI are in rising mode and not overbought.
Buying can be initiated at CMP (Rs 172.9), and more can be bought on declines to Rs 170. Upside targets are at Rs 182 in the next 3-5 weeks. Place a stoploss of Rs 166.
Buy Exide Industries – (CMP Rs 446.6)
Exide Industries has bounced back from the support of 411 and gradually climbed higher in the last few sessions. On Wednesday, the stock broke out of its recent range on the back of higher volumes and closed above the 20-day SMA.
Momentum indicators like the 14-day RSI too are in rising mode and at 50.55 is not extremely overbought, implying scope for more upsides.
Buying can be initiated at CMP (Rs 446.6), and more can be bought on dips to Rs 435. Upside targets are at Rs 470 in the next 3-5 weeks. Place a stoploss of Rs.425.
(Disclaimer: Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)
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