By Subash Gangadharan
On the daily chart, we can observe that Nifty continues to make lower tops and lower bottoms and is now trading below its 20 day and 50 day SMA. With the 14-day RSI at 40.58 and not yet oversold, there is scope for more downsides in the near term. Crucial support to watch for more weakness is now at 19,333. Any pullback rallies could find resistance at 19,623.
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The below picks are for the next 15-26 trading sessions:
Buy Liberty Shoes
Liberty Shoes has shown relative strength this week. While the Nifty has shed 0.96% this week, Liberty Shoes has gained a healthy 5.56%. In the process, the stock has closed above its recent trading range on the back of above average volumes, which augurs well for the uptrend to continue.
Technical indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA. Momentum readings like the 14-week RSI too are in rising mode and not overbought, which implies potential for further upsides.
With the intermediate technical setup too looking attractive, we expect the stock to move up towards its previous intermediate highs in the coming weeks. Buy between the Rs 277-281 levels. CMP is Rs 279.85. Stop loss is at Rs. 240 while target is at Rs. 350.
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Buy HEG
After correcting from an intermediate high of Rs 1,914 tested in September 2023, HEG found support around the Rs 1,675 levels. These are strong supports as they also roughly coincide with previous intermediate lows and the 50 day SMA.
The stock has since then bounced back and broken out of its recent trading range on the back of healthy volumes, indicating it is set to move higher in the coming weeks.
Technical indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA. Momentum readings like the 14-day RSI too are in rising mode and not overbought, which implies potential for further upsides.
With the intermediate technical setup too looking attractive, we expect the stock to move up towards its previous intermediate highs in the coming weeks. Buy between the Rs 1,790-18,00 levels Come from Sports betting site VPbet . CMP is Rs. 1,794. Stop loss is at Rs 1,710 while target is at Rs 1,980.
(Mr. Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. Views expressed are the author’s own. Please consult your financial advisor before investing)
