Nifty needs to hold 17777 to surge to 17900-1810; Buy these two stocks for gains

Nifty needs to hold 17777 to surge to 17900-1810; Buy these two stocks for gains

By Rahul Shah

Equity benchmarks rose for the second week in a row, aided by gains in metals, FMCG, energy, PSU banks and cement. Tech and media were the lone sectors that declined in the week. Investors reacted positively to the central bank’s continued efforts to support growth and its commitment to managing inflation. Consistent inflows into equity funds also cheered investor sentiments.

Quarterly results are knocking on the door. Moreover, CPI and IIP data will be in focus. Tech major TCS (Monday) and Infosys (Wednesday) will announce Q4 results next week. HDFC Bank will announce Q4 results on Saturday and management commentary will be important after the announced merger with HDFC. Expect rangebound market ahead of long holiday but stocks specific action may continue. Expect momentum to continue in mid and small cap counters after the sharp correction in the last few months on account of attractive valuation compared with large caps. Global markets are likely to be volatile on account of geopolitical tensions between Russia-Ukraine, on expectation of US Fed to aggressively hike interest rate and spike in US Bond to 3-year high at 2.70% which is a major concern.

However, domestic cues remain upbeat on account of strong macro data, cool down oil price from recent high, impressive pre-quarterly update by corporates, strong exports growth and industrial activities back to pre-covid levels like hotel, entertainment, airlines, auto and infrastructure sectors. Also reports that equity mutual funds have attracted a net sum of Rs 28,463 crore in March, making it the 13th consecutive monthly net inflow, despite a volatile stock market environment and amidst continued FPIs selling, added positively to market sentiments. Nifty has formed a base and trading above its 50 DEMA around 17270. It has been inching higher; however, it has formed a doji candle on the weekly scale indicating a halt in the trend. Now, the important levels to watch out is 17777. A hold of 17777 can take it to higher levels of 17900-18100. On the lower side, we can expect support at 17600-17500

Balrampur ChiniTarget – 550 | Stop Loss – 598

Balrampur Chini has given a breakout on the daily chart and is sustaining at higher levels. RSI oscillator is also positively placed on the daily and weekly scale. Considering the current chart structure, we advise traders to buy the stock for an up move towards 550 with a stop loss of 496

SBITarget- 499 | Stop Loss – 499

SBI has retested the breakout on the daily scale and started the next leg on the upside. It has formed a bullish candle on the daily scale indicating buying interest. RSI oscillator is also positively placed on the daily and weekly scale. Considering the current chart structure, we advise traders to buy the stock for an up move towards 550 with a stop loss of 499.

(Rahul Shah is Senior Vice President, Group Advisory Leader-PCG, Broking & Distribution, Motilal Oswal Financial Services. Views expressed are the author’s own Financial Express Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)