27 May Buy or Sell: Top 3 Trading ideas for Next week by Technical Experts
Market Tomorrow: 3 Recommended Stocks to Watch on Monday
Nifty Financial Services was the only sectoral index to end in the red (-0.26%) this week while Nifty Metal Metal was the top performer (+5.65%).
Nifty futures rollover in the May series stood at 70.61%, which is encouraging for bullish investors. Looking ahead to the June series, the outlook for Nifty is positive.
The strong rollover indicates a bullish sentiment, although Nifty Bank has seen lower rollover rates as investors book profits in the current series.
The overall view for the June series is positive for Nifty with an upside potential to reach 18800-19000. On the lower end. 18200 will continue to act as crucial support for the June series.
expected to perform well in the upcoming series :
Auto, Cement, Pharma, PSU Banks, and Realty.
While less favored are:
Oil and Gas and IT
For the June series, Nifty has the potential to reach 18800-19000, with 18200 serving as crucial support.
Considering the substantial buying by Foreign Institutional Investors (FIIs) in the cash market and the long position rollovers, there is a possibility of hitting a record high in June.
FIIs have shown strong interest in the Indian market, being net buyers with a significant investment of over Rs 20,000 crore.
Their participation in the Futures and Options (F&O) segment, coupled with the technical setup of the Nifty index, indicates continued demand from FIIs in the short term.
The rally in heavyweight RIL, which saw a 2% increase on Friday, has been triggered by a consolidation breakout and movement above its 200-day moving average. A double-bottom formation observed on lower timeframes further suggests a bullish pattern.
These factors combined indicate the potential for a sustainable rally in the short term, with the stock expected to move up to around Rs 2,600 and find support at Rs 2,430.
An uptrend in Midcap IT
IT stocks, particularly midcaps, have been on an upward trend in the past month.
The IT Index has experienced a consolidating breakout, and the Relative Strength Index (RSI) is in a bullish crossover, supporting the positive sentiment.
However, there is a resistance level at 29600 that may hinder further upward movement. A decisive breakout above 29600 could strengthen the sector. On the downside, there is a support level at 28800, providing a buffer in case of a retracement.
Nifty Bank has lagged behind primarily due to a short build in HDFC Bank.
The index has encountered resistance near its all-time high, but a breakout above 44,200 could trigger a strong upward movement.
Traders are advised to consider buying near the support level of 43,500 or upon a breakout above 44,200.
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Top ideas for the week:
In the coming week, Rupak De, Senior Technical Analyst at LKP Securities has given buy calls on
TCS, Dabur, and Tata Consumer.
Buy at Rs 790.
Target price: Rs 855.
Stop loss: Rs 760
Tata Consumer has experienced a breakout above a consolidation high, indicating a potential uptrend. It is on the verge of giving a Cup and Handle breakout, which is a bullish continuation pattern. The stock has consistently traded above a critical near-term moving average, indicating a strong position.
The RSI is in a bullish crossover, further supporting the positive sentiment. The potential upside target is at Rs 855, with a support level at Rs 760.
Tata Consumer Products Limited, formerly known as Tata Global Beverages, is a leading Indian multinational company in the consumer goods sector.
The company is a part of the prestigious Tata Group, one of India’s largest and most respected conglomerates. Tata Consumer specializes in the production and distribution of a wide range of food and beverage products.
Tata Consumer has a diverse portfolio of well-known brands that cater to various consumer preferences and lifestyles.
Its product categories include
-The company operates through various brands such as Tata Tea, Tetley, Tata Coffee, Himalayan natural mineral water, Tata Salt, Tata Sampann, Tata I-Shakti, and Tata Soulfull, among others.
-The company has a strong presence both in India and in international markets.
-It has successfully expanded its footprint across more than 40 countries, serving millions of consumers globally.
-Tata Consumer’s products are available in retail outlets, supermarkets, online platforms, and through its own distribution networks.
Buy at Rs 538-543.
Target price: Rs 585.
Stop loss: Rs 519
Dabur has experienced a breakout above a falling trendline, indicating a reversal of the downtrend. It has been sustaining above a critical near-term moving average, showing strength in its price action. The RSI is in a bullish crossover, supporting the positive outlook.
The potential upside target is at Rs 585, with a support level at Rs 519.
Dabur India Limited is one of India’s largest and most renowned consumer goods companies.
Established in 1884, Dabur has a rich heritage of over a century and has become a household name synonymous with natural healthcare and personal care products.
Dabur offers a diverse range of products that cater to various segments of the market.
The company’s product portfolio includes
-oral care products,
-hair care products,
-digestive health products, and
home care products.
-Some of its well-known brands include Dabur Chyawanprash, Dabur Honey, Dabur Red Toothpaste, Vatika hair care range, and Fem skincare range, among others.
-Dabur has a strong foundation in Ayurveda, the ancient Indian system of medicine, and integrates its principles into its product formulations.
-The company’s products are formulated using natural ingredients and botanical extracts, combining traditional wisdom with modern science.
-Dabur’s commitment to quality and purity has earned it a reputation for producing reliable and effective products.
-The company has a significant presence not only in India but also in international markets. Dabur products are available in over 100 countries, catering to a diverse global consumer base.
Buy at Rs 3,330.
Target price: Rs 3,550.
Stop loss: Rs 3,240
TCS has experienced a breakout above a swing high, suggesting a bullish trend reversal. It has consistently traded above a critical near-term moving average, indicating strength in its price movement. The RSI is in a bullish crossover, further supporting the bullish sentiment.
The potential upside target is at Rs 3,550, with a support level at Rs 3,240.
Tata Consultancy Services (TCS) is a global leader in IT services, consulting, and business solutions.
Established in 1968, TCS is part of the Tata Group, one of India’s largest and most respected conglomerates. With its headquarters in Mumbai, India.
TCS offers a comprehensive range of services, including IT and digital solutions, consulting, business process outsourcing, infrastructure services, and engineering services.
The company’s expertise spans multiple domains such as
banking and financial services,
retail and consumer goods,
-TCS operates in over 46 countries and serves clients across diverse industries.
-TCS is known for its strong customer focus and commitment to delivering excellence. The company leverages cutting-edge technologies and innovative solutions to help organizations transform their businesses and achieve their goals.
-TCS has a vast talent pool of skilled professionals who possess deep industry knowledge and technical expertise, enabling them to provide customized solutions tailored to each client’s unique requirements.
TCS has been at the forefront of digital transformation, helping clients harness the power of emerging technologies such as artificial intelligence, cloud computing, internet of things (IoT), blockchain, and data analytics.
`Please note that these recommendations are based on technical analysis and market conditions at the time of the chat. It’s important to conduct thorough research and consider personal financial circumstances before making any investment decisions.
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