Traders should remain nimble-footed and vigilant while deciding on stocks to buy for the trading. Risk measures should be taken properly before taking big position in swing trading, said Vinay Rajani of HDFC Securities
Vinay Rajani
December 14, 2021 / 07:36 AM IST
Apollo Hospitals’ promoters currently hold 29.82% stake (Representative image)
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var titStr=”;var editw=”; var typevar=”; var pparr= new Array(‘Monitoring your investments regularly is important.’,’Add your transaction details to monitor your stock`s performance.’,’You can also track your Transaction History and Capital Gains.’); var phead =’Why add to Portfolio?’; if(secglbVar ==1) { var stkdtxt=’this stock’; var fltxt=’ it ‘; typevar =’Stock ‘; if(lastRsrs.length>1){ stkdtxt=’these stocks’; typevar =’Stocks ‘;fltxt=’ them ‘; } } //var popretStr =lvPOPRHS(phead,pparr); //$ (‘#poprhsAdd’).html(popretStr); //$ (‘.btmbgnwr’).show(); var tickTxt =’‘; if(typparam1==1) { var modalContent = ‘Watchlist has been updated successfully.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //var existsFlag=$ .inArray(‘added’,newappndStr[1]); //$ (‘#toptitleTXT’).html(tickTxt+typevar+’ to your watchlist’); //if(existsFlag == -1) //{ // if(lastRsrs.length > 1) // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exist in your watchlist’); // else // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exists in your watchlist’); // //} } //$ (‘.accdiv’).html(”); //$ (‘.accdiv’).html(appndStr); } }, //complete:function(d){ // if(typparam1==1) // { // watchlist_popup(‘open’); // } //} }); }); } else { var disNam =’stock’; if($ (‘#impact_option’).html()==’STOCKS’) disNam =’stock’; if($ (‘#impact_option’).html()==’MUTUAL FUNDS’) disNam =’mutual fund’; if($ (‘#impact_option’).html()==’COMMODITIES’) disNam =’commodity’; alert(‘Please select at least one ‘+disNam); } } else { AFTERLOGINCALLBACK = ‘overlayPopup(‘+e+’, ‘+t+’, ‘+n+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function pcSavePort(param,call_pg,dispId) { var adtxt=”; if(readCookie(‘nnmc’)){ if(call_pg == “2”) { pass_sec = 2; } else { pass_sec = 1; } var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’; $ .ajax({url:url, type:”POST”, //data:{q_f:3,wSec:1,dispid:$ (‘input[name=sc_dispid_port]’).val()}, data:{q_f:3,wSec:pass_sec,dispid:dispId}, dataType:”json”, success:function(d) { //var accStr= ”; //$ .each(d.ac,function(i,v) //{ // accStr+=”+v.nm+”; //}); $ .each(d.data,function(i,v) { if(v.flg == ‘0’) { var modalContent = ‘Scheme added to your portfolio.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //$ (‘#acc_sel_port’).html(accStr); //$ (‘#mcpcp_addportfolio .form_field, .form_btn’).removeClass(‘disabled’); //$ (‘#mcpcp_addportfolio .form_field input, .form_field select, .form_btn input’).attr(‘disabled’, false); // //if(call_pg == “2”) //{ // adtxt =’ Scheme added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //else //{ // adtxt =’ Stock added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //$ (‘#mcpcp_addprof_info’).css(‘background-color’,’#eeffc8′); //$ (‘#mcpcp_addprof_info’).html(adtxt); //$ (‘#mcpcp_addprof_info’).show(); glbbid=v.id; } }); } }); } else { AFTERLOGINCALLBACK = ‘pcSavePort(‘+param+’, ‘+call_pg+’, ‘+dispId+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function commonPopRHS(e) { /*var t = ($ (window).height() – $ (“#” + e).height()) / 2 + $ (window).scrollTop(); var n = ($ (window).width() – $ (“#” + e).width()) / 2 + $ (window).scrollLeft(); $ (“#” + e).css({ position: “absolute”, top: t, left: n }); $ (“#lightbox_cb,#” + e).fadeIn(300); $ (“#lightbox_cb”).remove(); $ (“body”).append(”); $ (“#lightbox_cb”).css({ filter: “alpha(opacity=80)” }).fadeIn()*/ $ (“#myframe”).attr(‘src’,’https://accounts.moneycontrol.com/mclogin/?d=2′); $ (“#LoginModal”).modal(); } function overlay(n) { document.getElementById(‘back’).style.width = document.body.clientWidth + “px”; document.getElementById(‘back’).style.height = document.body.clientHeight +”px”; document.getElementById(‘back’).style.display = ‘block’; jQuery.fn.center = function () { this.css(“position”,”absolute”); 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Nifty failed to surpass the crucial resistance of 50-day EMA (exponential moving average), placed at 17,516 and ended the session at 17,385 with the loss of 0.72 percent on December 13. Nifty closed with bearish candlestick of ‘Engulfing’ pattern on the daily chart. However, this fall is not enough to justify the short-term bearish reversal.
The higher highs and higher lows are still intact on the short term charts. The indicators and oscillators like RSI (relative strength index), MACD (moving average convergence divergence) and DMI (directional movement index) have not shown any sign of changing the trend from bullish to bearish. However, falling ADX (average directional index) has been showing sign of slowing down the momentum in the markets.
For the short term, Nifty has got stiff resistance in the range of 17,600-17,650. Any close above this range could push Nifty towards 17,900 target. On the downside, support is seen in the range of 17,150-17,200.
Market looks very stock and sector-specific. Trading opportunities can be observed in both the directions, as far as derivative stocks are placed. IT, metal and capital goods are some of the sectors which look strong, while NBFC and FMCG sectors are looking weak.
Intermediate trend of the Nifty is still not certain and on the basis of the chart patterns, we cannot say that we are out of woods. Nifty has not even retraced 50 percent of the entire downswing which we saw from 18,604 (top made on October 19, 2021) to 16,782 (bottom made on November 29, 2021). Bearish trend gets negated once underlying surpasses 61.8 percent Fibonacci retracement, which is placed at 17,900 odd levels.
To sum it up, we believe that Nifty has not negated the bearish developments on the intermediate charts. However, short-term trend moves have been showing attempt by the Nifty to get in to the bullish zone. Confirmation of the bullish trend reversal would only come when Nifty closes above 17,900. Short term supports for the Nifty is seen at 17,150.
Traders should remain nimble-footed and vigilant while deciding on stock to buy for the trading. Risk measure should be taken properly before taking big position in the swing trading.
Here are three buy calls for next 2-3 weeks:
Jindal Stainless: Buy | LTP: Rs 184.25 | Stop-Loss: Rs 175 | Target: Rs 208 | Return: 12.9 percent
Stock has broken out from the bullish Inverted Head and Shoulder pattern on the daily chart. Breakout is accompanied with jump in volumes. Recently stock showed great strength when other metal stocks were correcting.
Stock has reclaimed a level above 50-day EMA. Stock has been holding above its medium to long term moving averages. It is expected to register new a 52-week high above Rs 208.
CCL Products: Buy | LTP: Rs 405.15 | Stop-Loss: Rs 380 | Target: Rs 460 | Return: 13.5 percent
Stock has broken out from the downward sloping trend line on the daily charts. Breakout is accompanied by jump in volumes. Stock has been finding support around its 100-day EMA.
Stock is on the verge of breaking out from the consolidation which has been holding for last 5 months. Rising coffee prices could also help the company like CCL to perform well in the coming weeks.
L&T Infotech: Buy | LTP: Rs 6,770.60 | Stop-Loss: Rs 6,464 | Target: Rs 7,400 | Return: 9.3 percent
Stock price has broken out from the symmetrical triangle pattern on the daily chart. Price breakout is accompanied by rising volumes. IT sector has been performing well and recent breakout in dollar against rupee could also help the sector to do well further.
Primary trend of the stock has been bullish with higher tops and higher bottoms. Stock has been holding levels above its medium to long term moving averages.
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