By RAs on Stocktwits
This week, the Nifty50 was volatile, mainly influenced by economic events such as the release of inflation rate data for India and the USA. On Monday, the Nifty50 opened flat at 21,800 and closed lower by 184 points at 21,616. Conversely, on Friday, the Nifty50 opened higher by 109 points at 22,020 and closed nearly unchanged at 22,033, crossing the resistance level of 22,000.
Looking ahead to next week, the critical support level for the Nifty50 is at 21,800. Given the current week’s data and the Nifty50 closing above 22,000, indicating bullish sentiments, there is a pattern of higher lows forming (weekly basis) and the Relative Strength Index (RSI) level is also near 70. Taking these factors into consideration, the outlook for the Nifty50 for the upcoming week is bullish, with an important resistance level of 22,500.
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ITC by Aditya Hujband:
Cmp: 405 | Targets: 450 – 475 | Stoploss: 368
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ITC is currently priced at 405 creating a base near the support level of 400. The company’s fundamentals and Q3 results are strong. The stock has recently hit bottom and is consolidating near the support level of 400 with high trading volumes.
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The RSI level of the stock is below 30 indicating the over-selling zone. If the stock maintains its position above the support level, a potential pullback from the current level is anticipated, aiming for a target of 450 & 475 within three months.
HDFC AMC by Chintan Chheda
CMP: 3,875 | Target: 4,625 | SL: 3,725
Investors eyeing momentum opportunities should take note of HDFCAMC (HDFC Asset Management Company Ltd), currently priced at Rs. 3875. The stock’s recent behavior signals a compelling case for a strategic entry. Breaking free from a prolonged four-year consolidation range characterized by stagnant returns, HDFCAMC exhibits a renewed vigor, showcasing superior strength compared to the broader market index, Nifty.
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Technical indicators paint a bullish picture, with ratio charts highlighting robust momentum and the Aroon Indicator affirming a strong upward bias. Notably, the stock’s price action displays a sequence of higher highs and higher lows, a hallmark of an emerging uptrend, further reinforced by the formation of a Bullish Continuation Heikin Ashi Pattern. Additionally, the MACD/Signal Line crossover underscores the potential for sustained upside, providing a favorable risk-reward proposition for investors.
UPL by Prosenjit Ghosh
CMP: 489.30 | TARGET: 563.80 | SL: 452.15
The Stock has been in a Down Trend since 2021 but now successfully created a Descending Broadening Wedge, followed by a break of an LH. The expectation is the price will move up and give us a minimum 2:1 Reward to Risk trade, which is approx. 9.71% Return on Investment. The Stoploss should be kept at 452.15, the First Target will be 526.50 and the Final Target will be 563.80.
(Views expressed are author’s own. Please consult your financial advisor before investing.)
