Financial Year 2023 starts on a high note
It has been an action packed last one year but as they say all is well that ends well. Financial Year 2022 ended with whopping gains of around 19% and the commencement of the new Financial year has been on a high note.
During the previous week, the markets were trapped in a range of 17000 – 17500 and last week the benchmark index started with testing the lower levels on Monday. Very quickly the prices were away from the lower end and as the week progressed the northward journey continued. The real action was however seen on Friday with prices breaking above the hurdle of 17500 and hastening towards 17650 levels. The up move has been supported with broad based buying bringing smile for traders fraternity. Bank Nifty that was earlier struggling in the vicinity of 36800 – 37000 have quite easily broken above the same forming a clear Cup N Handle pattern. Going ahead, we now sense any dip towards 36800 – 37000 to now act as a buying opportunity and the positive momentum to continue in near term towards 38000 – 38500 in the short span. This is likely to be the catalyst to push Nifty towards 18000 mark. Traders are hence advised to remain buoyant and use any dips as a buying opportunity.
NSE Scrip Code – INDIACEM
View – Bullish
Last Close – Rs. 218.30
Justification – The stock prices for the last couple of weeks have been consolidating in a range and prices have finally come out of this consolidation by breaking above the range confirming a ‘Cup N Handle bullish breakout. The said breakout is witnessed with a bullish candle and good increase in volume. In addition, the recent base formation has been seen around the support of 89EMA and forming higher bottom on the same augurs well for the bulls. We sense a strong outperformance from this counter considering the above evidence and hence we recommend a buy for a near term target of Rs.235. The stop loss can be placed at Rs.208.40
2. NSE Scrip Code – HDFCAMC
View – Bullish
Last Close – Rs. 2276.50
Justification – This stock has been a clear underperformer however after forming a base around the long term support; the technical setup finally suggest that the prices are coming out of the slumber phase. On the daily chart, stock prices have confirmed a bullish reversal ‘Inverse Head N Shoulder’ breakout supported with good increase in volume. In addition, prices have closed above 50EMA that were previously acting as strong resistance and now indicates a change in polarity. Moreover, on the weekly chart, momentum indicator RSI has given fresh buy signal. With all the above scenario, we recommend a buy for a near term target of Rs.2390. The stop loss can be placed at Rs.2195.
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