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Buy these two stocks for near term gains as Nifty gears up to claim fresh all-time highs

A breakout above the 15916 levels could lead to the Nifty heading towards the 16000-16100 levels.

By Subash Gangadharan

The Nifty continues to consolidate in a range between 15500-15916 for the last several weeks. The 15900-15916 levels have been tested several times over the same period and found resistance. Even on Tuesday the Nifty reacted from the 15916 levels and corrected. But on Wednesday, the Nifty has again resumed climbing higher on the back of rising momentum readings like the 14-day RSI.

This increases the odds of a breakout happening in the very near term. A breakout above the 15916 levels could lead to the Nifty heading towards the 16000-16100 levels. Crucial supports to watch for resumption of weakness are at 15779.

Check live price: Nifty 50

The below picks are for the next 15-26 trading sessions

Buy TeamLease Services

Teamlease Services is in an intermediate uptrend as it continues to make higher tops and higher bottoms over the last several months.

Over the last one week, the stock has been consolidating in a range between the 3521-3755 levels with the 20 day SMA providing support. On Wednesday, the stock broke out of this range on the back of above-average volumes. This augurs well for the uptrend to continue.

Technical indicators are giving positive signals as the stock trades above the 20 day and 50 day SMA. Daily momentum indicators like the 14-day RSI too have bounced back and are in rising mode now, which augurs well for the uptrend to continue.

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 3700-3800 levels. CMP is 3763. Stop loss is at 3570 while targets are at 4200.

Buy RBL Bank

After falling from a high of 274 tested in early January 2021, RBL Bank found support around the 169 levels in April 2021. These levels also correspond to previous intermediate lows tested in October 2020, implying they are strong supports.

The stock has then gradually climbed higher and then consolidated in a range between the 206 and 218 levels for the last few weeks. On Wednesday, the stock broke out of this range on the back of above-average volumes.

Technical indicators are giving positive signals as the stock trades above the 20 day and 50 day SMA. Daily momentum indicators like the 14-day RSI too are in rising mode and not overbought, which augurs well for the uptrend to continue.

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 220-225  levels. CMP is 223.35. Stop loss is at 208 while targets are at 255.

(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)

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Buy these two stocks for near term gains as Nifty gears up to claim fresh all-time highsFinancial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



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