Stocks to purchase for the brief time period: The Indian inventory market settled within the optimistic territory final week, as traders picked shares selectively in financials, vitality, energy, and pharma sectors.
However, good points have been muted as overseas institutional traders (FIIs) bought Indian shares value over ₹600 crore within the money section final week. The Nifty 50 inched up by 0.40% for the week ended February 20.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, identified that after failing to maintain above the 26,000-resistance zone, the Nifty entered a corrective and unstable part.
The index initially rebounded in the direction of 25,900 however confronted promoting stress, dragging it all the way down to a contemporary short-term low close to 25,350.
“The 25,350–25,900 range has now become crucial for the next directional move. Immediate support is placed at 25,350–25,400; a decisive break below could trigger accelerated selling towards the 25,100 gap-fill zone. On the upside, 25,800–26,000 remains a strong resistance band, and only a sustained breakout above this zone would revive bullish momentum,” mentioned Patel.
According to Patel, momentum indicators on decrease timeframes recommend the correction is maturing, with early indicators of promoting exhaustion rising. Unless a significant unfavorable set off arises, the broader bias stays cautiously bullish.
For Bank Nifty, Patel believes the 61,500–62,000 zone continues to behave as a significant resistance, whereas 59,800–60,000 stays essential help. A decisive breakout on both aspect will outline the subsequent development course.
Stock picks for the brief time period
Jigar Patel recommends shopping for the next three shares for the subsequent one to 2 weeks:
IRCTC | Buying zone: ₹646 to ₹638 | Target value: ₹702 | Stop loss: ₹612
Patel highlighted that not too long ago, Indian Railway Catering and Tourism Corporation (IRCTC) was buying and selling in a Bollinger Band squeeze, indicating a part of low volatility and consolidation.
In the earlier session, the value broke out of the band with robust quantity enlargement, signalling the beginning of a possible enlargement transfer.
The DMI setup stays optimistic, with +DI above –DI, whereas ADX has began to roll upward, suggesting strengthening development momentum and the potential for sustained upside.
“Based on this setup, one may consider buying in the ₹646–638 zone, keeping a stop loss at ₹612 on a closing basis, and looking for an upside target of ₹702,” mentioned Patel.
Tata Chemicals | Buying zone: ₹718 to ₹710 | Target value: ₹785 | Stop loss: ₹680
According to Patel, not too long ago, Tata Chemicals fashioned a robust base close to its month-to-month ground pivot help, indicating stable demand at decrease ranges.
The inventory has now damaged out of its regression channel, and Pearson’s R worth stands at 0.96, which displays a really robust trending construction with excessive correlation to the regression slope.
This breakout is supported by robust quantity participation, suggesting shopping for curiosity and bettering momentum.
“As long as the price sustains above the pivot support zone, the overall bias remains positive. One may consider buying in the ₹718–710 zone, keeping a stop loss at ₹680 and looking for an upside target of ₹785,” mentioned Patel.
Colgate-Palmolive (India) | Buying zone: ₹2,200 to ₹2,160 | Target value: ₹2,450 | Stop loss: ₹2,045
Patel mentioned Colgate-Palmolive (India) closed above the Alligator indicator, with all three traces aligned and transferring parallel, indicating a robust trending construction and continuation bias.
The DMI setup stays optimistic, with +DI above –DI, whereas ADX is rolling upward, suggesting strengthening development momentum. Additionally, a bullish crossover in MACD additional helps the upside view and confirms bettering value momentum.
“Considering the alignment of multiple indicators, the setup favours a bullish outlook. One may consider buying in the ₹2,200–2,160 zone, keeping a stop loss at ₹2,045, and looking for an upside target of ₹2,450,” mentioned Patel.
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Disclaimer: This story is for instructional functions solely. The views and proposals expressed are these of the knowledgeable, not Mint. We advise traders to seek the advice of with licensed consultants earlier than making any funding choices, as market situations can change quickly and circumstances could range.
