Nifty has formed bullish candle formation for ten consecutive weeks and expected to enter in the upper band of 14,400 to 14,500 level in this week. On the lower side, 14,200 to 14,100 would be the support zone for Nifty below which downswing could be seen till 13,900 level. For , 32,650 – 32,750 would be the next resistance zone while the support remains at 31,500 below which reversal could be expected. Traders are advised to trade cautiously with strict stop-loss.
Here are few top picks for the week:
1. BUY: CEAT Ltd (NS:) (ABOVE – 1210)
STOP LOSS: 1155
This stock has given a trend line breakout and has formed bullish candle formation on its daily charts. It is trading above its important moving averages. Any breakout above the level of 1210 would add further upward momentum to the stock. Therefore, we recommend initiating buy position above Rs.1210 with a stop loss of Rs. 1155 and a target of Rs. 1274.
2. BUY: ABB (NS:) (ABOVE – 1330)
STOP LOSS: 1290
This stock is has given a major weekly breakout and is trading above its important moving averages. The stock is forming a higher high higher low formation on its daily charts. Any breakout above the level of 1330 would add further upward momentum to the stock. Therefore, we recommend initiating buy position above Rs.1330 with a stop loss of Rs.1290 and a target of Rs.1380.
Disclaimer: The analyst does not hold a position in any of the stocks mentioned above.