Vinay Rajani, HDFC Securities
On June 14, Nifty managed to stay above its earlier swing low of 15,566. Yesterday it closed at its new all time high. Bank Nifty managed to close with a Bullish Hammer candlestick pattern on the Tele chart. It has support at the upward sloping trendline which is near the daily low of 22 April and 14 May 2021.
Nifty Midcap and Smallcap indices also managed to close above their key support in yesterday’s trade. Nifty can soon achieve the target of 16,000-16,200. On the downside, there is 15,566 support for it on a closing basis. On the other hand, Bank Nifty would be advised to stay long with a stop loss of 34,374. On the upside in Bank Nifty, 35,810 and 36,500 levels can be seen. .
It is worth noting that so far the bank, auto and realty indices have not contributed much to this boom of the market. Now in the coming days, we can see the enthusiasm in them. Among the sectors showing strength so far, power, PSUs and capital goods may continue to rise further.
Talking about the midcap segment, auto ancillary, metal and IT stocks should be kept on the radar from medium and short term perspective. However, the bulls seem to be completely dominating the market right now. But we must keep in mind that more than 94 percent of the stocks included in the NSE500 have crossed their 200-DMA. If we look at the bull market rallies in history, this indicates that we may see a reversal from the overbought zone.
The Nifty Small Cap Index has rallied more than 2 times from the bottom of March 2020. Keeping this in mind, we should choose stocks very carefully and take new positions with adequate risk management. Trailing stoploss will be advised on trading positions.
Vinay Rajani’s Investment Advice
Oberoi Realty | LTP: Rs 657.60 | This stock has a buy target of Rs 780 with a stop loss of Rs 600. This stock can see an upside of 19% per cent in 2-3 weeks.
Motilal Oswal Financial Services | LTP: Rs 799.95 | Buying advice in this stock with a target of Rs 940 with a stop loss of Rs 720. Up to 18 per cent upside can be seen in this stock in the coming 2-3 weeks.
Avenue Supermarts (D-Mart) | LTP: Rs 3,276.40 | Buying advice in this stock with a target of Rs 3799 with a stop loss of Rs 3000. Up to 16 per cent upside can be seen in this stock in the coming 2-3 weeks.
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