Market uptrend intact, short-term consolidation likely; Buy these two stocks to pocket gains

Market uptrend intact, short-term consolidation likely; Buy these two stocks to pocket gains

By Subash Gangadharan

On Daily chart, we observe that Nifty has broken out of a downward-sloping trend line that has held down the highs of 2021 and 2022. In the process, the index is now comfortably trading above the 20 and 50-day SMA. While the near-term trend remains up, the fact that the 18327 levels are acting as a resistance could limit the upsides in near term. Nifty could therefore consolidate in a range for the next few sessions before trying to find direction. A move below the 20-day SMA at 18138 would negate our bullish view.

SPARC: BuyTarget price: Rs 279 | SL: Rs 240

SPARC has been steadily climbing in the last few months after making a low of 170. This week, the stock broke out of the recent trading range on the back of above average volumes. The stock is now trading above the 20-day and 50-day SMA. And momentum readings like the 14-week RSI are in rising mode and not overbought, which implies potential 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 between the 250-256 levels. CMP is 253. Stop loss is at 240 while target is at 279.

(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)