Bulls ahead, go slow: Top 10 trading ideas for next 3-4 weeks


After a few of days of consolidation, bulls have taken full control of Dalal Street from Wednesday and therefore the Nifty rallied almost near the 17,800-mark on Friday.

However, selling and profit-booking within the last hour of trade made the road cautious. The index fell 44 points on Friday to settle at 17,585.20 and formed a bearish candle on the daily charts, but gained 1.24 percent during the week to make a bullish candle on the weekly scale.

Experts also turned cautious after the stellar run and advised investors to remain light on positions with a strict stop-loss before getting a firm direction within the coming weeks.

“The trend is extremely strong, but honestly, the present move isn’t giving us comfort in the least . We reiterate that when things start to seem hunky-dory and there are not any signs of correction, the market surprises. It’s difficult to predict the precise time, but it is often better to be safe than sorry,” said Sameet Chavan, Chief Analyst, Technical and Derivatives, Angel Broking.

“As of now, we aren’t advising to short but a minimum of one can book profits on a daily intervals and stay light on positions. Friday’s sharp correction from higher levels is clearly a sign of this, and, hence, we continue with our cautious stance,” he said.

As far as levels are concerned, 17,700-17,800 is to be seen because the immediate hurdle. On the flipside, 17,450-17,250 should be treated as key supports. the primary sign of real weakness would come as long as the market starts sliding below the lower range, he said.

“The banking space contributed the lion’s share to the last three days’ rally as we saw Bank Nifty beginning of its long slumber to post a fresh record high. In fact, on, Friday also , the broader market was sulking after the initial upmove. But the banking index managed to shut within the green,” he said. The Bank Nifty rallied 3 percent during the week.

Going ahead, Chavan feels all eyes would get on this heavyweight basket, because if Nifty has got to move towards 18,000, this space must continue its momentum.

In addition, “the broader end of the spectrum had a wonderful run throughout the week, but we saw some decent profit-booking during this space also on the Judgment Day , which doesn’t bode well. Hence, we remain a touch sceptical and that we expect the image to urge clear within the coming week itself.”

Here are 10 trading ideas by experts for subsequent 3-4 weeks. Returns are supported the Citizenship Day closing prices:Nifty Bank and Nifty private sector Bank Index have provided a breakout, and from here on, the participation from these indices will certainly keep the market in an uptrend.

The bank index has provided a breakout from the falling line , with a transparent buy crossover in its momentum indicator, with a rise in volumes. Hence, we recommend the stock for a short-term target of Rs 1,685/Rs 1,720 and a stop-loss of Rs 1,545.

The stock has formed a pleasant symmetrical triangular pattern on the hourly chart, which is in its wave 4. Here on, wave 5 should resume and it’ll take the stock to the Rs 770-Rs 800 level within the short term. The momentum indicator is well within the buy mode — from an hourly to monthly time-frame . Hence, the bulls have absolute control over the short- to medium-term.

The stock, after having provided a breakout from a sideways consolidation, has been trending higher, forming higher tops and better bottoms, with a rise in volumes and fresh buy crossover in its momentum indicators.

The stock has also seen an extended build-up on the derivatives front, which further confirms that the trend is robust within the short term. Hence, we recommend it for a target of Rs 770-795, with a stop-loss of Rs 696.

After a pointy pullback rally, the stock is hovering within the Rs 410-Rs 430 range. Currently, LIC Housing Finance is trading near the 200-day simple moving average (SMA) and therefore the texture of the charts indicates a robust possibility of a fresh uptrend wave from the present levels.

For positional traders, Rs 400 or the 20-day SMA would be the key price . Above it, the uptrend formation will continue up to Rs 450-470.

After a pointy rally, the stock is witnessing some selling pressure near the Rs 450 level. However, the medium-term trend remains positive. On daily charts, the stock has formed a robust uptrend continuation formation, which is broadly positive. For trend-following traders, Rs 440 would be the sacrosanct level. As long as it’s trading above an equivalent , the uptrend formation will continue till Rs 475.

After a robust rally from Rs 3,750 to Rs 4,200, the stock is currently consolidating within the Rs 4,000-Rs 4,200 price range. On the daily and weekly charts, the stock has formed a promising higher, high and better , low formation, which supports further uptrend from the present level.

Unless it trades below Rs 4,000, positional traders can retain an optimistic stance and appearance for a target of Rs 4,500. Fresh buying are often considered now, and, on dips, if any, between Rs 4,110 and Rs 4,080, with a stop-loss below Rs 4,000.

It took support at the sacrosanct price of Rs 220, which coincides with its 200-DMA. then it’s likely to witness a breakout of a bullish inverse Head and Shoulders formation.

It is bottoming out with a rounding bottom formation and managed to shut above its all-important moving averages.

The counter is constant its strong bullish momentum, following a breakout of 14 years of consolidation, and it’s likely to go towards the 4-digit mark very soon.

The stock has given a breakout of an Inverse Head and Shoulder pattern on the hourly chart. The breakout follows a bullish trend on the daily chart. The stock trading near the support of the 200-day exponential moving average (EMA) line. We believe the stock could rise from this price , and, hence, recommend a buy with a target of Rs 7,350 and stop-loss of Rs 6,670.

Oil marketing companies, especially BPCL and IOC, have done well recently. Both stocks are trading at their 52-week highs. But HPCL has been a laggard and will not move in tandem with its peers. The way it’s shaped up, we may even see some catch-up from this counter within the coming days.

On the daily time-frame chart, the ‘Inverse Head and Shoulder’ pattern is clearly visible and therefore the breakout of an equivalent has been confirmed during the latter a part of the week gone watching the rising values of the momentum oscillator, we recommend a buy for a short-term target of Rs 298. The stop-loss are often placed at Rs 274.

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