As Nifty, Sensex Reach Record Highs
Experts predict that the market’s upward trend will continue in the next trading sessions, and the Nifty 50 index is expected to reach levels between 19,100 and 19,200. However, there is a possibility of some investors selling their shares to secure profits after that.
After multiple attempts, the Nifty50 index finally broke its previous all-time high and reached a new peak of 19,011.25 on June 28, which was the monthly expiry day for June futures and options contracts. This achievement was supported by buying across various sectors, with the metal and pharma sectors leading the way with over 1% gains each.
The BSE Sensex index also reached a new intraday high of 64,050.44 and closed at a record level of 63,915.42, marking a gain of 499.39 points.
Right from the opening, the Nifty50 index surpassed the critical resistance level of 18,900 and maintained a positive trend throughout the trading session, despite some volatility in the latter half. It concluded the day at a record level of 18,972.10, showing an increase of 154.7 points. This marked the third consecutive trading day of an upward trend.
On the daily charts, the Nifty50 index formed a bullish candlestick pattern, consistently making higher highs and higher lows. This indicates a positive sentiment for future trading.
Experts predict that the rally will continue in the upcoming sessions, with the Nifty50 index aiming to reach levels between 19,100 and 19,200. However, there may be some selling by investors to secure profits after crossing those levels. The crucial support for the index is expected to be in the range of 18,800 to 18,700.
On a weekly basis, the index has shown a long bullish candlestick pattern and has consistently formed higher tops and bottoms for the past 14 weeks.
According to Nagaraj Shetti, a technical research analyst at HDFC Securities, the chart pattern is positive, with the formation of higher tops and bottoms indicating an upward trend. However, the confirmation of a reversal in the higher top pattern has not yet occurred.
He further stated that the short-term trend of the Nifty index remains positive. After breaking through the crucial resistance level of 18,900 on June 28, there is a possibility of further upward movement towards the levels of 19,100-19,200 in the coming sessions. However, there may be a period of consolidation or minor weakness after reaching those levels. The immediate support level is at 18,830, as per his analysis.
For the third day in a row, there has been an increase in the number of new long positions in Nifty futures, as indicated by the future open interest (OI). Ashwin Ramani, a derivatives and technical analyst at SAMCO Securities, mentioned that the market sentiment is positive following a strong closing.
According to him, the support level for the Nifty index has now shifted to 18,900. As for the upside, the immediate obstacle for the index lies at 19,100. Ramani also noted that the options activity at the 19,000 strike price will provide important signals for future trends, particularly as the market approaches the expiry of the July series on Friday.
Here’s a look at the top 10 trading ideas by experts for the next three-four weeks. Returns are based on June 28 closing prices:
Expert: Nagaraj Shetti, technical research analyst at HDFC Securities
Central Depository Services (CDSL): Buy | LTP: Rs 1,117.25 | Stop-Loss: Rs 1,025 | Target: Rs 1,215 | Return: 8.7 percent
After a period of sideways movement with a slightly negative trend, the stock price of CDSL experienced a significant increase this week and is currently trading above the hurdle of a downward-sloping trendline at Rs 1,060 levels.
Furthermore, the stock price has surpassed the important resistance levels of the weekly 10- and 20-period exponential moving averages (EMA) during this week. This suggests that there is a greater likelihood of the upward momentum continuing in the upcoming week.
The trading volumes have also expanded during the breakout, indicating increased interest in the stock. Additionally, the weekly 14-period relative strength index (RSI) shows a positive signal, further supporting the idea of continued upward momentum in the stock price.
Considering these factors, it may be suitable to initiate buying in CDSL at the current market price (CMP). It is advisable to add more shares on any price declines down to Rs 1,060 and set an upside target of Rs 1,215 for the next month. It is important to place a stop-loss at Rs 1,025 to manage the risk associated with the trade.
JSW Steel: Buy | LTP: Rs 783.4 | Stop-Loss: Rs 738 | Target: Rs 855 | Return: 9 percent
After experiencing a slight decline and moving within a narrow range in the previous week, the stock price has shown a sustained increase this week and is currently trading at a higher level. On the weekly chart, it can be observed that the stock price has surpassed a significant hurdle that has been present for several months, around Rs 780.
The weekly timeframe chart indicates that the positive pattern of higher tops and bottoms remains intact. Additionally, the trading volumes increased on June 28 during the upward movement of the stock price, and the weekly 14-period relative strength index (RSI) shows a positive signal.
Considering these factors, it may be a suitable opportunity to buy JSW Steel at the current market price (CMP). It is advisable to add more shares on any price declines down to Rs 762 and set an upside target of Rs 855 for the next month. To manage the risk associated with the trade, it is important to set a stop-loss at Rs 738.
Expert: Vidnyan Sawant, AVP – technical research at GEPL Capital
Kalyan Jewellers India: Buy | LTP: Rs 142 | Stop-Loss: Rs 130 | Target: Rs 170 | Return: 20 percent
The stock price of Kalyan Jewellers is currently trading at its highest level ever, showing strong momentum. The recent breakout from a Descending Triangle pattern suggests that the previous upward trend is likely to continue.
To further confirm this breakout, we can observe higher trading volumes, which indicate the strength of the upward movement.
Additionally, the stock has consistently remained above both the 50-day and 200-day Exponential Moving Averages (EMAs), indicating a sustained upward trend.
On the weekly timeframe, the Relative Strength Index (RSI), which is a momentum indicator, has been steadily increasing and is currently above the 60 level. This signifies a positive momentum in the stock.
Based on these observations, we expect the price to continue rising towards Rs 170. To manage the risk associated with the trade, it is recommended to set a strict stop-loss at Rs 130, based on closing prices.
EPL: Buy | LTP: Rs 221 | Stop-Loss: Rs 205 | Target: Rs 265 | Return: 20 percent
After reaching its peak in August 2020, the stock price of EPL experienced a decline and has since formed a strong support level within the range of Rs 145-195. Interestingly, recent price action has shown a breakout from the Rectangle pattern in early June 2023, indicating the beginning of an upward trend.
To support this breakout, there has been an increase in trading volumes, providing credibility to the upward movement.
Additionally, on the weekly timeframe, the Relative Strength Index (RSI) has also experienced a breakout, further confirming the presence of positive momentum in the stock.
Based on these factors, we anticipate the stock price to continue appreciating in the near future, with a potential target level of Rs 265. It is recommended to maintain a strict stop-loss at Rs 205, based on closing prices, to manage the risk involved in the trade.
ICICI Lombard General Insurance: Buy | LTP: Rs 1,332.7 | Stop-Loss: Rs 1,290 | Target: Rs 1,545 | Return: 16 percent
The stock has remained above a 10-month high and has formed a pattern of higher tops and higher bottoms, indicating a strong positive trend. On the weekly charts, the stock has established a base around the Rs 1,050-1,070 levels. Furthermore, the stock has broken out from a Cup & Handle pattern, confirming its bullish nature.
On the daily timeframe, the stock has recently surpassed the resistance of a descending trend line, accompanied by increased trading volume, which indicates strong participation from buyers.
The momentum indicator, RSI, on the weekly timeframe is showing an upward trend and remains above the 65 level, indicating the presence of positive momentum. We anticipate the prices to continue rising towards Rs 1,525. It is important to set a strict stop-loss at Rs 1,215, based on closing prices, to manage the risk involved in the trade.
Expert: Viraj Vyas, CMT, | technical & derivatives analyst – institutional equity at Ashika Stock Broking
CMS Info Systems: Buy | LTP: Rs 368.5 | Stop-Loss: Rs 344 | Target: Rs 410 | Return: 11 percent
The stock has shown a pattern of fluctuating price movements, sometimes with increased volatility. After reaching its highest point in November 2022, the stock entered a phase of accumulation, where it formed a pattern known as a Rounding Bottom.
Recently, there has been a breakout above the neckline of the Rounding Bottom pattern. This breakout is accompanied by higher trading volumes and a gap-up in the stock price. These indicators suggest that there is increased strength in the stock and that knowledgeable market participants are intentionally accumulating it.
Apollo Hospitals Enterprises: Buy | LTP: Rs 5,126.9 | Stop-Loss: Rs 4,850 | Target: Rs 5,800 | Return: 13 percent
The stock stood out as a top performer in the healthcare sector as the market recovered from the impact of the COVID-19 pandemic. It experienced a remarkable rise, increasing from Rs 1,200 to Rs 5,600. However, since November 2022, the stock has undergone a corrective phase in both its price and duration.
The recent movement of the stock suggests the formation of a pattern called a Cup and Handle, which typically indicates accumulation of shares.
This breakout was accompanied by significant trading volumes, indicating a renewed optimistic sentiment among investors. As a result, it is anticipated that the stock will reach new all-time highs in the near future.
JSW Steel: Buy | LTP: Rs 783.4 | Stop-Loss: Rs 735 | Target: Rs 875 | Return: 12 percent
In the metal sector, there has been a notable period of consolidation in both time and price since March 2020. Among the companies in this sector, JSW Steel has particularly stood out as an impressive performer. For the past 27 months, the stock has been in a consolidation phase and is currently attempting to surpass its previous highest price levels.
JSW Steel has shown strong momentum and strength compared to other companies in the sector. The presence of a pattern called a Cup and Handle indicates a potential target price range of at least Rs 850-875 for the stock.
Expert: Santosh Meena, head of research at Swastika Investmart
Sun Pharmaceutical Industries: Buy | LTP: Rs 1,021.8 | Stop-Loss: Rs 985 | Target: Rs 1,070 | Return: 5 percent
The current situation is displaying a classic bullish pattern known as the Cup and Handle formation. This pattern is occurring near the levels where the 50-day, 100-day, and 200-day moving averages (DMA) converge, which adds to its significance.
When considering potential price targets, there is an immediate resistance level at Rs 1,020. If the counter manages to surpass this obstacle, it indicates a strong likelihood of a rapid upward movement towards Rs 1,070.
The momentum indicator, RSI, is positioned positively above the 50 mark. This suggests favorable momentum for the counter and indicates a potential continuation of the upward trend.
Furthermore, the moving average convergence divergence (MACD) is trading above the centerline, providing additional support to the bullish sentiment.
Rainbow Childrens Medicare: Buy | LTP: Rs 977.45 | Stop-Loss: Rs 915 | Target: Rs 1,100 | Return: 12.5 percent
The counter is currently showing a positive momentum and has the potential to sustain this trend by breaking out of a Bullish Flag formation. During a recent pullback, it found support at the previous breakout level of Rs 885. This level is also important as it coincides with a 38.2 percent retracement of the previous rally, making it a significant support level.
Additionally, the counter is trading above its important moving averages, indicating a favorable outlook. This suggests that the overall trend is bullish and that the counter has the ability to continue moving upwards.
Poly Medicure: Buy | LTP: Rs 1,149.65 | Stop-Loss: Rs 1,090 | Target: Rs 1,250 | Return: 9 percent
The counter recently broke out of a consolidation phase that lasted for two years, accompanied by noticeable trading volumes. In the past few days, it has entered another consolidation period and formed a Bullish Flag pattern within a shorter time frame.
For immediate support, the rising 20-day moving average (DMA) and the previous breakout zone in the range of Rs 1,090-1,070 are expected to be significant. These levels have the potential to act as strong support areas for the counter if there are any pullbacks.
When looking at the momentum indicators in the shorter time frame, it is important to note that they currently indicate a slightly overbought condition.
However, it’s worth considering that overbought conditions can persist for a while, suggesting that the counter may continue to show strength despite these readings.
Any and all liability for risks resulting from investment transactions or other asset dispositions carried out by the customer based on information received or a market analysis is expressly excluded. All the information made available here is generally provided to serve as an example only, without obligation and without specific recommendations for action. We therefore recommend that you contact your personal financial advisor before carrying out specific transactions and investments.
TAGS: #Apollo Hospitals Enterprises #Central Depository Services #CMS Info Systems #EPL #ICICI Lombard General Insurance Company #JSW Steel #Kalyan Jewellers India #Market Cues #Market Edge #Nifty #Poly Medicure #Rainbow Children’s Medicare #Sensex #Stocks Views #Sun Pharmaceutical Industries #Technicals
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