Buy these two stocks for near term gains as Nifty gears up to claim fresh all-time highs

A breakout above the 15916 ranges might result in the Nifty heading in direction of the 16000-16100 ranges.

By Subash Gangadharan

The Nifty continues to consolidate in a spread between 15500-15916 for the final a number of weeks. The 15900-15916 ranges have been examined a number of instances over the identical interval and located resistance. Even on Tuesday the Nifty reacted from the 15916 ranges and corrected. However on Wednesday, the Nifty has once more resumed climbing greater on the again of rising momentum readings just like the 14-day RSI.

This will increase the chances of a breakout occurring within the very close to time period. A breakout above the 15916 ranges might result in the Nifty heading in direction of the 16000-16100 ranges. Essential helps to observe for resumption of weak point are at 15779.

Test reside worth: Nifty 50

The beneath picks are for the following 15-26 buying and selling periods

Purchase TeamLease Companies

Teamlease Services is in an intermediate uptrend because it continues to make greater tops and better bottoms over the past a number of months.

Over the past one week, the inventory has been consolidating in a spread between the 3521-3755 ranges with the 20 day SMA offering assist. On Wednesday, the inventory broke out of this vary on the again of above-average volumes. This augurs effectively for the uptrend to proceed.

Technical indicators are giving constructive alerts because the inventory trades above the 20 day and 50 day SMA. Every day momentum indicators just like the 14-day RSI too have bounced again and are in rising mode now, which augurs effectively for the uptrend to proceed.

With the intermediate technical setup too wanting constructive, we consider the inventory has the potential to maneuver greater within the coming weeks and due to this fact advocate a purchase between the 3700-3800 ranges. CMP is 3763. Cease loss is at 3570 whereas targets are at 4200.

Purchase RBL Financial institution

After falling from a excessive of 274 examined in early January 2021, RBL Bank discovered assist across the 169 ranges in April 2021. These ranges additionally correspond to earlier intermediate lows examined in October 2020, implying they’re robust helps.

The inventory has then progressively climbed greater after which consolidated in a spread between the 206 and 218 ranges for the previous few weeks. On Wednesday, the inventory broke out of this vary on the again of above-average volumes.

Technical indicators are giving constructive alerts because the inventory trades above the 20 day and 50 day SMA. Every day momentum indicators just like the 14-day RSI too are in rising mode and never overbought, which augurs effectively for the uptrend to proceed.

With the intermediate technical setup wanting constructive, we consider the inventory has the potential to maneuver greater within the coming weeks and due to this fact advocate a purchase between the 220-225  ranges. CMP is 223.35. Cease loss is at 208 whereas targets are at 255.

(Subash Gangadharan is a Senior Technical and Spinoff Analyst at HDFC Securities. Views expressed are the creator’s personal. Please seek the advice of your monetary advisor earlier than investing)