By Subash Gangadharan
Nifty View
On the daily chart, we observe that Nifty remains in an uptrend and is comfortably trading above the 20 and 50-day SMA. The 14-day RSI, too, is in rising mode and not overbought. The index was however showing signs of tiredness at the highs and was corrected on Wednesday. Further weakness is likely once the immediate support of 23412 is broken.
It is important that the Nifty holds above the recent swing lows of 23206; otherwise, the current uptrend will reverse.
Buy IDFC (121): | Target Rs. 130 | Stop-loss Rs 115
IDFC has bounced back strongly from the 105 levels tested in early June 2024. These levels coincide with the previous intermediate lows of the stock. The stock has gradually moved higher over the last several sessions.
And this week, the stock has broken out of its recent trading range, indicating it is set to move higher. Momentum readings like the 14-day RSI are climbing higher and are not overbought, which indicates further upside potential.
Buy Graphite (597): | Target Rs. 640 | Stop-loss Rs 568
The stock has bounced back from a recent low of 513, which roughly coincides with the 50-week SMA and a previous intermediate low, indicating a double-bottom pattern. The stock has gradually moved higher, and this week it has broken out of its recent trading range on the back of above-average volumes.
The recent upmove has also led to the stock moving above the 20-day SMA. And the momentum readings like the 14-day RSI are climbing higher and not overbought, which indicates further upside potential.
(Disclaimer: Views, recommendations, and opinions expressed by Subash Gangadharan, Senior Technical and Derivative Research Analyst at HDFC Securities are personal and do not reflect the official position or policy of Financial Express.com. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)