The Nifty50 surpassed the 10,600 mark for the first time ever on Monday. Last week, the index broke out above the previous peak in the daily chart, where it was witnessing strong resistance on several occasions. It is signalling a positive bias as the RSI on daily and weekly charts is showing a bullish trend.
For the week ended January 5, the Nifty50 added 0.27 per cent to close at 10,558 compared with the December 29 close of 10,530. The Sensex gained 0.28 per cent to 34,153 from 34,056 during the same period.
“We expect the Nifty to maintain the ongoing positive momentum unless and until it breaks below the 10,380 level. Support for the week is seen at 10,380 and resistance at 10,760,” said Vaishali Parekh, Head of Technical Desk at Prabhudas Lilladher.
NIIT TechnologiesBSE 3.77 % | Buy | Target price: Rs 710-725 | Stop loss: Rs 625
NIIT Technologies is on an up-trend across all time frames forming higher tops and higher bottoms. Since November 2015, the stock was in a major consolidation mode within the Rs 629-400 band on the weekly chart. It broke out of the 630 level and is sustaining above the same. On the daily chart, the stock has seen a breakout of the downsloping trend line at Rs 663 level. On the weekly chart, it is sustaining above its 20-day, 500-day and 100-day SMAs, which support bullish sentiments. Both weekly weekly and monthly strength indicators RSI and momentum indicator Stochastic are in the bullish territory and are sustaining above their reference lines, which signals strength and upward momentum in price. Taking into consideration the above factors, the maximum upside can be expected to Rs 710-725.
RBL Bank | Buy | Target price: Rs 570-585 | Stop loss: Rs 505
The most prominent observation on the price chart of RBL Bank is that the entire consolidation is under way since April 2017 till date and it has formed a downsloping trendline. The breakout of this trend line happened at Rs 525 level on the weekly chart. The stock is sustaining above its 20-day, 50-day, 100-day and 200-day EMAs, which support bullish sentiments ahead. The stock witnessed a significant rise in volumes at the breakout level, indicating increased participation in the rally. Both weekly and monthly strength indicator RSI along with the momentum indicator Stochastic are in the bullish territory and are sustaining above their reference lines which signals strength and upward momentum in price. Thus, taking into consideration the above factors, the maximum upside can be expected to Rs 570-585.
Praj Industries BSE 0.90 % | Buy | Target price: Rs 130-132 | Stop loss: Rs 115
The most prominent observation on the price chart of Praj Industries is that the entire sideways consolidation under way since May 2017 till date has taken the shape of a “Pennant” continuation pattern formation on the weekly price chart. The breakout of the ‘Pennant’ continuation pattern formation was witnessed at Rs 111. The measuring implication of the price pattern i.e. the range of the consolidation (111-91 = 20 points) projected from the breakout level of Rs 111 provides upside target of Rs 130-132. The stock is sustaining above its 20-, 50-, 100- and 200-day EMAs, which support bullish sentiments ahead. The stock has been forming higher tops and higher bottoms across all timeframes, indicating a sustained uptrend. Volumes are rising significantly around the breakout level.
Kolte Patil Developers | Buy | Target price: Rs 290 | Stop loss: Rs 263
The stock saw a sharp upsurge in the last quarter after breaking out of a long sideways rectangle formation. It has tested its highs around the Rs 404-mark and in a under sideways consolidation. A buy signal over Stochastic has emerged over daily charts. The daily MACD is sharply moving towards positive crossover. Resumption in up move is seen being initiated with higher-than-average volumes. The 48.89% narrower-than-normal Bollinger bands further increase the possibility of a sharp move in price.
RBL Bank | Buy | Target price: Rs 620 | Stop loss: Rs 500
RBL Bank broke out of the Rs 497-533 trading range this week on the back of above-average volumes. The stock also trades above the 13-day and 50-day SMA. Weekly momentum readings are in rising mode and not extremely overbought. The Stochastics indicator too is in rising mode.
Lakshmi Machine Works BSE -0.20 % | Buy | Target price: Rs 7,730 | Stop loss: Rs 5,910
The counter has broken out of the Rs 5,636-6,099 trading range last week on the back of above average volumes. In the process, the stock has closed at a new 52-week high. Technical indicators like the 50 day SMA and the 14-week RSI too are giving encouraging signals.
Aurobindo Pharma | Buy | Target price: Rs 765 | Stop loss: Rs 645
The stock reversed after taking support of its 200-week moving average and rose to a five-week closing high. The stock has also completed its 50% retracement (Rs 503-809) near to the support levels of sub- Rs 650, which would act as strong support for the stock.
Bharat ElectronicsBSE 1.02 % | Buy | Target price: Rs 195 | Stop loss: Rs 171
The stock has made multiple bottoms in the range of Rs 175-180 levels and consolidating for the past three months. It is poised for a breakout from current levels. The key technical indicator RSI has flattened and showing an up move from its oversold zone for a pull back.
L&T Finance Holdings | Buy | Target price: Rs 195| Stop loss: Rs 162
The stock has made a double bottom near its 200-day average and closed at an eight-day high. The sector is in focus with positive momentum and will recover prior damages after a consolidation of three weeks.
Kotak Mahindra Bank | Buy | Target price: Rs 1,080 | Stop loss: Rs 990
This counter appears to be moving in a contracting structure since last October after hitting new life time highs of Rs 1,115. As prices in last couple of trading sessions approached the apex point of this contracting triangle a breakout can be expected out of it on near term. On such a breakout a bigger target of around Rs 1,080 can’t be ruled out. Hence, traders are advised to go long in anticipation of such a breakout with a stop below Rs 990 on a closing basis.
Hero MotoCorp | Buy | Target price: Rs 3,950 | Stop loss: Rs 3.700
The pace of rally from the recent lows of Rs 3,410 is suggesting that this counter might have started a fresh leg of uptrend from the said lows which have more steam to propel this counter to much higher levels. Hence, as it is in consolidation mode after retracing 62% of fall from the highs of Rs 4,091-3,410 it can target much higher levels once this consolidation phase gets culminated. Positional traders should make use of this pause to go long for a target of Rs 3,950 with a stop below Rs 3,700 on closing basis.