Buy these two stocks for near term gains while Nifty faces resistance at 15,900

quick time period correction is probably going if the fast helps of 15505-15450 are damaged.
(Picture: REUTERS)

By Subash Gangadharan

On the each day chart, the Nifty continues to carry above a rising development line that has held the necessary lows of the previous few months. This suggests that the index stays in an intermediate uptrend. The Nifty has additionally lately made larger bottoms at 14,591, 14,884 and 15,374 and continues to commerce above the 20 and 50 day SMA, which supplies additional proof of an uptrend.

The Nifty is nonetheless discovering resistance across the 15,900 ranges because it has examined it twice within the final one week and didn’t cross it. This 15,900 degree may due to this fact cap the upsides for the close to time period. A brief time period correction is probably going if the fast helps of 15,505-15,450 are damaged.

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

Purchase CUB (City Union Bank)

After falling from a excessive of 200 examined in November 2020, CUB discovered help across the 150 ranges in April 2021. These ranges additionally correspond to earlier intermediate highs examined in August 2020, implying the change of polarity precept is at work as prior resistances are actually appearing as helps.

The inventory then consolidated in a spread between the 150 and 180 ranges for the previous few months with the 50 week SMA offering help.

On Wednesday, the inventory broke out of a 3 day buying and selling vary simply above the 50 week SMA, implying {that a} recent upmove might have simply began. Each day momentum indicators just like the 14-day RSI have bounced again and are in rising mode now, which augurs nicely for the uptrend to proceed.

With the intermediate technical setup too wanting constructive, we imagine the inventory has the potential to maneuver larger within the coming weeks and due to this fact advocate a purchase between the 165-169 ranges. CMP is 167.85. Cease loss is at 163 whereas targets are at 178.

Purchase Siemens

Siemens has proven relative power this week. Whereas the Nifty has gained 0.08%, Siemens has gained 0.29% over the identical interval. The inventory has been lately consolidating above the 50 day SMA and on Wednesday, it broke out of a 3 day buying and selling vary.

With the 50 day SMA offering help, each day momentum indicators just like the 14-day RSI bouncing again from oversold ranges and the intermediate technical setup too wanting constructive, we count on the inventory to maneuver larger within the coming classes.

We, due to this fact, advocate a Purchase between the 2010-2040 ranges. CMP is 2030. Cease loss is at 1990 whereas targets are at 2110.

(Subash Gangadharan is a Senior Technical and By-product Analyst, HDFC Securities. Views expressed are the writer’s personal. Please seek the advice of your monetary advisor earlier than investing.)