Nifty in a short term uptrend; Galaxy Surfactants, Balaji Telefilms among stocks to buy

Nifty in a short term uptrend; Galaxy Surfactants, Balaji Telefilms among stocks to buy

By Subash Gangadharan

On the daily chart we observe that the NSE Nifty remains in a short term uptrend. It has been continuously making higher tops and higher bottoms for the last several sessions after taking out the previous swing high of 19,524. With the 14-week RSI at 74.36 and not extremely overbought, we expect the Nifty to continue its upward journey. Short term sell offs are however not ruled out. Crucial supports to watch for a short term trend reversal are at 19,690.

Galaxy Surfactants has corrected from an intermediate high of Rs 2979 touched in June 2023. The stock recently found support at the Rs 2546 levels which also roughly coincides with the 20 week SMA, indicating it is a strong support.

The stock has since then been gradually climbing higher and making higher tops and higher bottoms over the last few sessions. On Wednesday, stock has broken out of a trading range on the back of above average volumes. The stock therefore looks set to continue its uptrend. Technical indicators are giving positive signals as the stock is trading above the 20 day and 50 day SMA. And weekly momentum readings like the 14-week 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. Our entry levels are between Rs 2650 and Rs 2690. CMP is Rs 2671. Stop loss is at Rs 2530 and upside targets are at Rs 2850.

Buy Balaji Telefilms

After witnessing an intermediate correction and finding support at the Rs 35 levels, Balaji Telefilms has been steadily climbing higher and making higher tops and higher bottoms. In the process, the stock has crossed its previous swing high of Rs 43.45, thereby indicating a reversal of the recent downtrend.

Technical indicators are giving positive signals as the stock trades above the 20 day and 50 day SMA. Weekly momentum indicators like the 14-week RSI have bounced back from oversold levels and are in rising mode now. 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 Rs 44.5-45.5 levels. CMP is Rs 45.15. Stop loss is at Rs 42.5 while target is at Rs 50.

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