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During the truncated week, the benchmark NSE Nifty index continued with its recent pattern of achieving new milestones. We did see some intra-week mild profit booking but bulls came strongly back to close above the 17,350-mark. We witnessed a very narrow trading range during the week and although Nifty struggled above the 17,400 any dip towards 17,250 – 17,300 were getting bought into. Going ahead, looking at some of the technical evidence we do sense the upside capped around the 17,450-17,500 levels. This mentioned level is the 200% Fibonacci Retracement of the last year’s sharp fall from January 2020 high to March 2020 low. As of now, there are now signs of weakness however a single close below the 17,250 – 17,300 can trigger a correction. Traders are advised to continue with the stock-specific long approach as long we hold the mentioned support levels and keep booking timely profits.

Stock recommendations:

Sundram Fasteners | Buy | Target price: Rs 990 | Stop loss: Rs 847

During the week, prices witnessed good upside traction to not only cross above their stiff resistance of Rs 810 but also to break above the previous all-time high of Rs 867 marked during the June month. Now the prices have entered uncharted territory and have confirmed a bullish ‘Saucer’ breakout. One of the key observations is the huge increase in volume that is seen in the last few session that augurs well for the bulls. In addition, a fresh buy crossover can also be seen between the short term 20-SMA and medium-term 50-SMA. Looking at all the above evidence we sense a strong upside in this counter and hence we recommend a buy at current levels and on dips to Rs 880 for a near term target of Rs 990. The stop loss can be placed at Rs 847.

Tata Motors | Buy | Target price: Rs 322 | Stop loss: Rs 289

For the last five months, the levels around Rs 280 have been acting as a sturdy wall and any move towards it has resulted in a sharp bounce back. Recently, we witnessed a price correction that again got arrested around the Rs 280 levels but this time it got more significance as it coincided with a 200-SMA. On the weekly chart, we witnessed a Dragon Fly Doji during the fag end of August month and it is followed by confirmation of further up move proving it credence. On the daily chart, prices have closed above the 20-SMA that indicates that the short term trend has turned positive and the momentum oscillator ie RSI as well has turned positive by moving above the 50 zone. We see a good reward to risk ratio in this front line counter and hence we recommend a buy. Traders can buy at current levels for a target of Rs 322. The stop loss can be placed at Rs 289.

(The writer is CMT and equity technical analyst at Angel Broking, views expressed are personal)