On Friday we saw a strong pullback? So how confident are you on this particular pullback? What are the levels one should watch out for the Nifty and Bank Nifty going into the next holiday-shortened week?
Nifty has rebounded sharply after consolidation of the last two-three sessions and Friday’s up move is indeed indicating a sharp important reversal after the formation of lower bottom around 17,300-17,250 levels. This upside momentum is expected to continue at least towards the next overhead resistance of around 17,800 level in the next week. Bank Nifty is expected to scale to 42,000 level which is the next set of resistance over a period of time.
During the last week, some of the sectors and stocks showed impressive moves. For the week ahead, which are some of the stocks on your radar?
My first stock pick is RHI Magnesita India. If you look at the chart on the weekly front, after the recent downward correction during the last month, this stock has made a bottom reversal around Rs 600 levels this week and moved up significantly. This week’s candle pattern is also indicating the bottom reversal for the stock and the overall chart pattern is looking positive. So, I recommend buying this stock around Rs 675 which is the last close and the target would be around Rs 725-730 levels by placing a stop loss around Rs 645 levels.
My second stock is L&T Finance Holdings. This stock has been in an uptrend over the last few months as per the higher tops and bottoms and it has recently made a higher bottom around Rs 86-87 levels and moved up this week. We can look to buy this stock around Rs 91.20 which is the base close and target would be around Rs 96.50-97 and one can place stop loss around Rs 88.