By Subash Gangadharan
Markets surged higher last week on the back of the BJP’s decisive victory in the assembly elections of three key states. This week, after a brief consolidation, Nifty has surged higher to close at a new lifetime high on the back of a Dovish Fed.
Technical indicators continue to give positive signals as the Nifty comfortably trades above the 20 day and 50 day SMA. And momentum readings like the 14-week RSI too are in rising mode and not overbought. This suggests the potential for more upsides in the coming sessions. Crucial supports to watch now for a reversal are at the recent lows of 20,769.
The below picks are for the next 15-26 trading sessions
Mahindra & Mahindra Financial I Buy
M&MFin has corrected from an intermediate high of 347 in July 2023 and found support at the 237 levels in November 2023, which also coincides with the previous intermediate highs, thereby indicating the change of polarity principle is at work as prior resistances are now acting as supports.
The stock has since then bounced back and broken out of its recent trading range this week on the back of above-average volumes. This augurs well for the uptrend to continue.
Technical indicators too are giving positive signals. The stock is currently trading above the 20 day and 50 day SMA. Daily momentum indicators like the 14-day RSI too are in rising mode and not overbought, suggesting scope for more upsides.
With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy. Our entry levels are between 289 and 293. CMP is 291. Stop loss is at 267 and upside targets are at 340.
Brigade Enterprises I Buy
Brigade is in a healthy uptrend after recently touching a low of 565 in September 2023. This week, the stock has bounced back from the 20 day SMA on the back of above average volumes and resumed its uptrend. The stock also trades above the 50 day SMA and momentum readings like the 14-day RSI are in rising mode and not overbought.
With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 852-856 levels. CMP is 854.0. Stop loss is at 793 while the target is at 930.
(Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)
