In line with gains on the SGX Nifty, indices are set to open with record gains again and amid all the positives such as approval of two Covid 19 vaccines in India i.e. Covishield, covaxin, there is marked optimism among investors even as the new Covid 19 mutuant has been found in the UK and has made its way to India too.
On the weekly chart last week, Nifty formed a long legged Doji candlestick bullish reversal pattern, indicating that bulls have overpowered bears and is on the path to hit new highs. Now, after this uptrend, there shall be small uptrend again but thereafter the markets shall consolidate in a range.Crucial supports to watch for a short term trend reversal are at 13864-13842.
So, for quick gains in 15-26 trading sessions, here are 2 stock picks by HDFC Securities:
Maruti Suzuki - Buy Target price- Rs. 8000
Maruti stock has now found a support at Rs. 7205, this is after gaining to 52-week high of Rs. 8013. And the stock at the closing of January 1, 2021 quoted at Rs. 7691. And now the scrip is constantly making higher tops and higher bottoms over the last few sessions. Short term strength is also visible in the scrip as it closed 20 SMA. 14-day RSI has also rebounced and is showing strength. So, a buy is recommended in the price range of 7560-7615 levels. Stop-loss is at 7430.
Balkrishna Industries- Buy PT is Rs. 1760
The tyre maker found support near 50 day SMA at around Rs. 1515 levels. The stock has since then gradually climbed higher making higher tops and higher bottoms in the process. The stock's last closing price is Rs. 1642 per share. The stock closed above the 20 day SMA. Short term momentum indicators like the 14-day RSI too have bounced back from oversold levels. This augurs well for the uptrend to continue.
A Buy between the 1590-1625 levels is recommended while Stop-loss is at 1550