Charts Show High Support for the two Stocks you can Buy Next Month; Nifty May Move Higher in Coming Sessions
After the correction seen in Nifty from mid February, the markets have bounced back comfortably. Nifty has bounced back to the upward going line on the daily chart to indicate that the uptrend is intact now.
The Nifty corrected last Wednesday after finding a resistance at the previous high of 14879 and the 20 and 50 per day SMA. We know that the correction happened after a steady rise from an upward rising slope, it is being speculated that the Nifty could move higher in the coming time. It may gain momentum once the Nifty crosses the swing high of 14879. It may also be leading towards its life high of 15432. Downside supports are 14617.
Below are the picks for the next 15-26 trading sessions
Finolex Industries found support around the 601 levels in late March of this year, after correcting from a high of 690 hit in early March. The fact that these lows also coincide with the lows tested in February 2021, indicates a double bottom pattern on the daily charts.
The idea for a well uptrend to continue comes from the fact that the stock broke out of its less trending range of 601-624 to reach above average values and the fact that it also closed above the 20 and 50 day SMA. Short term momentum indicators are also in rising mode.
The stock is believed to have the potential to rise higher in the coming weeks, taking into consideration that the intermediate and the long term setups also look positive. A buy between the 630-641 level could be beneficial. CMP is 637, stop loss at 610 and targets are at 710.
HPCL found support around the 225 levels in late March 2021, after correcting from a high of 259 touched in late February 2021. These levels roughly coincide with the previous swing lows of the stock tested in February 2021, too, and thus, imply that the 225 levels is a strong support area.
The stock moved up smartly on Wednesday and took out its recent highs and closed above the 50 day SMA. This indicates that the uptrend could continue.
Short term momentum indicators like the 14-day RSI too have jumped up from lower levels and are in rising mode and not overbought.
With the intermediate and long term technical setups looking good, the stock could have the potential to move upwards in the coming weeks. Thus, it could be wise tbuy between the 233-238 levels. CMP is 236. Stop loss is at 228 while targets are at 260.
(Please consult your financial advisor before investing.)