The market reached a new peak in the week ending January 12 thanks to the bulls’ powerful reappearance and the technology stocks’ incredible run after a prolonged drought. The Nifty 50 actually approaches the eagerly anticipated psychological 22,000 mark. Experts said that given the high level of optimism, the bulls are likely to push the Nifty 50 to the 22,000–22,200 zone in the near future, with an immediate support level at 21,800–21,700 and a critical support level at 21,500. However, they anticipate some consolidation after reaching the stated target zone.
The Nifty 50 increased by 0.85% last week to close at a record high of 21,894.55. On the daily charts, this formed a bullish candlestick pattern with a long lower shadow, marking the seventh week in a row of higher highs.
Osho Krishan, senior analyst – technical & derivative research at Angel One said, “At the current juncture, the milestone of 22,000 is just a step away and with the structural setup, 22,100-22,150 is the next potential target for the current week starting from January 15”.
Strong support is located in the 21,600–21,500 range, while he believes that the lower end, between 21,800 and 21,750, should now serve as a buffer for any transient hiccup.
More optimistic than Osho, Jigar Patel, senior manager of equity research at Anand Rathi, believes that the rally above 22,000 may reach 22,200–22,400 this week.
He believes that although the FII index futures long-short ratio reading indicates that Nifty may still rise, this may be the last leg of the rally, and there may then be significant profit-taking in the market.
The experts’ outlook is still optimistic in the interim, but they cautioned against taking too many positions.
The top 10 stock ideas for a healthy return over the next three to four weeks have been compiled by VV Stock Zone. The January 12 closing price was taken into account when calculating the stock return.
Godrej Properties: Buy | LTP: Rs 2,274 | Stop-Loss: Rs 2,185 | Target: Rs 2,500 | Return: 10 percent
A clear uptrend is visible in the Godrej Properties stock, which is making higher highs and higher lows. Growing trading volumes are assisting this upward trend, suggesting a protracted build up.
Moreover, the stock has continuously maintained a higher position than its 12-day exponential moving average (EMA), which offers additional evidence of the current upward trend.
In the future, we anticipate that prices will rise to around Rs 2,500, at which point a daily closing stop-loss of Rs 2,185 is required.
Mahanagar Gas: Buy | LTP: Rs 1,264 | Stop-Loss: Rs 1,210 | Target: Rs 1,375 | Return: 9 percent
The MGL stock has effectively exited a noteworthy phase of consolidation, trading between Rs 1,000 and Rs 1,150. Its price has recently increased, and trading volumes have also noticeably increased.
Furthermore, a hidden bullish divergence on the daily timeframe of the Relative Strength Index (RSI) indicates the existence of positive momentum.
We anticipate further price growth up to Rs 1,375, at which point the stop-loss needs to be Rs 1,210 on a closing-day basis.
Grasim Industries: Buy | LTP: Rs 2,111.55 | Stop-Loss: Rs 2,030 | Target: Rs 2,300 | Return: 9 percent
The Grasim stock trend has quickened as the trend’s steepness has begun to increase. Significantly, the stock experienced a polarity shift at about Rs 2,050, indicating a generally positive sentiment in its trend.
In addition, the RSI reading above 50 indicates that the current trend is gaining momentum.
In the future, we anticipate price growth up to Rs 2,300, at which point the daily closing stop-loss must be Rs 2,030.
Power Mech Projects: Buy | LTP: Rs 4,734 | Stop-Loss: Rs 4,380 | Target: Rs 5,150-5,350 | Return: 13 percent
The stock price has broken out on the weekly line chart, reaching an all-time closing high with higher volumes. The weekly chart of the stock price shows a bullish higher top higher bottom formation. Momentum indicators and oscillators show that the stock is strong.
Suprajit Engineering: Buy | LTP: Rs 406 | Stop-Loss: Rs 380 | Target: Rs 435-455 | Return: 12 percent
On the weekly chart, the stock price has broken out from the downward sloping trendline that connects the highs of the weeks ending July 28, 2023 and September 8, 2023. The stock’s primary trend is positive, with the stock price trading above important medium and long term moving averages.
On the weekly chart, momentum indicators and oscillators such as the RSI and MFI (money flow index) are rising and above 60. The stock price has been consolidating for the past two weeks after breaking out from the downward sloping trendline, which we believe is a buying opportunity.
Shipping Corporation of India: Buy | LTP: Rs 172.5 | Stop-Loss: Rs 160 | Target: Rs 186-198 | Return: 15 percent
On the weekly chart, the stock price has broken out after passing the multiple top resistance of around Rs 164 levels. On the monthly chart, the stock price has been forming a bullish higher top higher bottom formation. Given that the stock price is above its significant long-term moving averages, the primary trend of the stock is positive.
Punjab National Bank: Buy | LTP: Rs 97.72 | Stop-Loss: Rs 94 | Target: Rs 105 | Return: 7.4 percent
The counter experienced a steady recovery from the lower levels after declining from the higher levels and rebounding from its demand zone. Furthermore, the counter has shown a breakout from its sloping channel formation on the daily charts.
L&T Finance Holdings: Buy | LTP: Rs 167.55 | Stop-Loss: Rs 160 | Target: Rs 180 | Return: 7.4 percent
After the remarkable up move, the stock is having a breather from last few sessions. The consolidation in the rangebound structure suggest bullish continuation chart formation.
Moreover, the stock comfortably closed above its short term moving average. Therefore, the stock is likely to resume its uptrend from the current levels.
Hindalco Industries: Buy | LTP: Rs 582 | Stop-Loss: Rs 560 | Target: Rs 625 | Return: 7.4 percent
After the recent selloff in the counter from the higher levels, the downward momentum had stopped. On daily charts, the counter has found support and reversed its trend from its important support zone along with decent volume activity.
Infosys: Buy | LTP: Rs 1,613 | Stop-Loss: Rs 1,550 | Target: Rs 1,750 | Return: 8.5 percent
The major in information technology has been rising in a higher low formation since April 17, 2023, when it reached a low of Rs 1,185. The stock, which has a current market price (CMP) of Rs 1,613, has failed to hold above the Rs 1,600 levels since April 2022 and has encountered multiple resistance levels around that level. The 1,600 strike represents the maximum Call open interest and the stock’s resistance.
The accumulation of new long positions in Index futures, bolstered by a surge in volumes, was indicated by the Future open interest (OI). Strong Put writing at the 1,600 strike combined with short covering may be enough to drive this stock’s next leg up.
The price might rise until Rs 1,750 levels in the upcoming month if additional buying is done at the current levels. For the stock, support is anticipated at the downside level of Rs 1,550. Purchasing now with a stop-loss of Rs. 1,550 and a target of Rs. 1,750 is recommended.
Just Dial: Buy | LTP: Rs 873 | Stop-Loss: Rs 840 | Target: Rs 1,050 | Return: 20 percent
On January 11, 2024, Just Dial reached a 52-week high of Rs 944 on the daily chart, helped by a massive spike in volumes. Along with it, it also closed above and above its previous swing high, which was set on July 17, 2023, at Rs 879. The daily chart displays a Cup and Handle pattern with multiple resistance at the Rs 950 levels.
Since taking the Fibonacci retracement support of 70.7 percent around Rs 513 levels on July 20, 2022, the price has been moving in an upward trending higher high higher low formation, drawn from the low of Rs 250 made on March 23, 2020 to the high of Rs 1,138 made on July 14, 2021.
With an immediate upside target of Rs 1,050 levels, it is recommended to purchase at the current level with a stop-loss of Rs 840.
