The Nifty managed to end the September 1 session on a nearly a percent high to close above 19,400 and also snapped its five-week losing streak, all thanks to broad-based buying. The recent weakest link, the BFSI space, lifted the overall sentiment.
The sacrosanct support zone of 19,300 – 19,250 has proved its significance and the weekly trade closed on a promising note. It’s important that the move is extended in the next couple of sessions or there could be turbulence ahead.
Hopefully, the bulls will take it forward and once the sturdy wall of 19,500– 19,600 is taken out, the slumber phase will come to an end. The first half of the week will likely set the near-term direction.
Here are two buy calls for the short term:
Latent View Analytics: Buy | LTP: Rs 455.15 | Stop-Loss: Rs 436.50 | Target: Rs 490 | Return: 8 percent
The stock has finally seen a strong rebound from the slumber phase in the current financial year and is hovering in the cycle of higher highs–higher lows. Recently, the stock saw robust trading volumes, which led to a surge in all its significant exponential moving averages (EMAs) on the daily time frame.
The stock looks well-versed to continue its upward rally in the near period. On technical parameters, most indicators align to the buoyant view.
We recommend buying for a trading target of Rs 490. The stop-loss can be placed at Rs 436.50.
Tata Power Company: Buy | LTP: Rs 255.35 | Stop-Loss: Rs 246 | Target: Rs 270 | Return: 6 percent
After consolidating for the most part of the current financial year, as suggested by the overlapping of its major EMAs, Tata Power has likely digested most of the gains from its previous upmove. The stock now looks set to scale higher, as indicated by the formation of a ‘Bullish Flag’ pattern on the daily chart.
Tailwinds of increasing momentum are also on its side, as the price continues to move north along with the "5-day" EMA.
Noting all the positive indicators, traders can look to buy for a near-term target of Rs 270. A strict stop-loss needs to be placed at Rs 246.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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