Buy HUDCO, Syngene International to pocket short-term gains; Nifty must hold above 18,200 for upmove

Buy HUDCO, Syngene International to pocket short-term gains; Nifty must hold above 18,200 for upmove

By Nagaraj Shetti

After showing a sustainable upside bounce in the last couple of sessions, Nifty shifted into a consolidation on Wednesday and closed the day lower by 09 points. A small positive candle was formed on the daily chart with upper shadow. Technically this pattern indicates a breather type movement after a sharp upside bounce. The market is currently placed at the hurdle of 18,150- 18,200 levels (resistance of ascending trend line), which has not been surpassed decisively on the upside. If Nifty manages to sustain above 18,200 levels in the short term, then the downside breakout of the said support that happened on Friday could be considered as a false downside breakout and such development is likely to have sharp positive implication on the market.

Stock Call: Housing & Urban Development Corp (HUDCO)

Buy | CMP: Rs 51.40The weekly timeframe chart of Housing and Urban Development Corporation Ltd (HUDCO) signal an upside bounce post downward correction. After a decisive upside breakout of crucial overhead resistance like down sloping trend line at Rs 48 in the later part of Nov, the stock price has moved up sharply in the next few weeks. The downward correction of last week has placed the stock price at the support of previous upside breakout area and has resulted into a sustainable upside bounce on Monday. This pattern indicates validation of the upside breakout of important resistance and this suggests more upside for the near term. Weekly 14 period RSI shows positive indication. Buying can be initiated in HUDCO at CMP (Rs 51.40), add more on dips down to Rs 49.50, wait for the upside targets of Rs 56.50 and Rs 62 in the next 3-5 weeks. Place a stoploss of Rs 47.50.

Stock Call: Syngene International

Buy | CMP: Rs 578The weekly timeframe chart of Syngene International Ltd indicates downward correction over the last couple of months. The stock price is in an attempt of forming an important bottom reversal around Rs 567 levels. The formation of bullish weekly candlestick patterns with long lower shadow of the last two weeks signal that the stock price is likely to bounce back sharply.The stock is expected to confirm a new higher bottom on a move above Rs 588-590 levels and that is expected to open a fresh buying participation towards the higher top of the sequence. Volume has started to rise and weekly RSI shows positive indication. Buying can be initiated in SYNGENE at CMP (578), add more on dips down to Rs 555, wait for the upside targets of Rs 625 and Rs 655 in the next 3-5 weeks. Place a stoploss of Rs 540.

(Nagaraj Shetti, Technical Research Analyst, HDFC Securities. The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)