“If we talk about the markets, Nifty has been struggling around the psychological mark of 26,000 points for the past few sessions and due to the weakness in the IT space, we are seeing some profit booking in this benchmark index. But if we look at the weekly charts of Nifty, a very strong formation took place last week and that has left us in the market where a dip should be considered as a buying opportunity. If we see, there is a bullish gap left around 25,700 which coincides with the major moving averages. So, We expect 25,700 to act as support, but on the higher side, 26,000 is the immediate resistance. So 25,700 to 26,000 is the key range for now and we need to play on this range. But that said, there are stock-specific opportunities and you should focus on that.With the Frontline Index moving within a tight range, attention shifts to sector and stock-specific opportunities. Bhosale highlighted the strength in the financial sector and noted broad buying interest.
“So if we see that the financial sector is doing very well, we see broad-based buying there. One of the counters from that space that I like is Bajaj Finance. If we see that despite the market weakness, this counter is up about 2%. If we see the chart structure, it has held above its main moving averages and today we see a breakout of a flag pattern. Also on the futures front we see a strong long formation. So Bajaj Finance can be bought with a stop loss of around 965, in the short term we expect a move towards the 1,025 level,” he said.
From the automotive world, Bhosale also sounded bullish on Hero MotoCorp, citing improving momentum indicators.
“The second counter I like is Hero MotoCorp. So also from the auto sector we see broad-based positive momentum. This counter, as we see, has held above its key moving averages and is forming a base on the intraday charts and today there is a break in the range. Especially in the RSI, if we see, it has gone over its previous swing high and is trading above the 60 zone, so Hero Moto can be bought in the short term. We expect targets of around 5,960 and for this trading stop-loss can be kept at around 5,600,” he added. Meanwhile, sentiment around Hindustan Unilever (HUL) has turned cautious following its recent results, with the shares under pressure. Bhosale said the technical situation suggests continued weakness unless key resistance levels are regained.
“So if we see that HUL has been able to sustain some gains in the last few weeks, it has struggled to cross the 2,500 levels and the kind of formation we are seeing now is bearish engulfing, so as of now, the momentum may remain on the negative side. So until the stock does not cross 2,500, you have to wait. Once it crosses 2,500, we can see a positive momentum. Until then, wait for it. If it goes back to the 2,500, we could see positive momentum 2,250 to 2,300, which would be ideal to add or else wait for a price breakout above 2,500 levels,” he said.
While the Nifty remains within the range, market experts suggest that selective stock picking could continue to provide opportunities even as the broader index consolidates around key technical levels.
#Stock #Recommendations #Rajesh #Bhosale