Hot Stocks Highlight: The bulls maintained a stronghold on Dalal Street over the past week, propelling benchmark indices to record-breaking peaks. The F&O (Futures & Options) expiry marked its fourth consecutive rise. The Nifty spot index not only surpassed the significant 26,000 barrier but was also seen moving beyond 26,200. In a similar vein, the BSE Sensex crossed the psychological threshold of 85,000.
However, the long-short ratio has escalated to nearly 80% during the week ending September 27, raising some eyebrows. The monthly Relative Strength Index (RSI) has also crossed the 80-mark, potentially indicating the formation of a temporary top. In light of this, it is prudent to adopt a cautious stance on the market for the medium term. Nevertheless, short-term scenarios still suggest further upsides in the coming weeks. With solid support levels, Nifty could aim for 26,500. However, should it face downturns, immediate support for Nifty is anticipated at 26,000, with the next significant support level lying at 25,700. Therefore, it is advisable to selectively invest in stocks with high conviction during this period.
On the flip side, Nifty Bank has again lagged behind. It initially achieved the 54,500 mark but gave up all its gains on Friday, forming a negative candlestick pattern evident on both daily and weekly charts. A potential uptrend for Bank Nifty is contingent on it breaking above 54,500 in the coming week. Conversely, a close below the 53,600 mark could signal a drop towards 53,000-52,800, where the 20-day exponential moving average (DEMA) lies.
Selected Stocks for Short-Term Gains
Jigar Patel’s Top Three Stock Picks:
| Stock | Current Price (Rs) | Recommendation |
|---|---|---|
| Bank of Baroda | 249.6 | Buy in the range of Rs 248-250 with a target of Rs 270 |
| Canara Bank | 113.1 | Buy in the range of Rs 112-113 with a target of Rs 122 |
| SBI Card Payment Services | 786.3 | Buy in the range of Rs 770-790 with a target of Rs 875 |
Bank of Baroda Analysis
Bank of Baroda appears to be on the brink of recovery after a three-month recession. A bullish pattern is emerging on the daily chart, supported by a triple bottom structure forming in the Rs 230-235 zone, signaling that the downtrend may be coming to a close. Currently trading around the Rs 250 level, the stock is poised near the 200-day EMA, confirming its attractiveness. The Daily RSI’s break above the bearish trendline complements this bullish trend, suggesting a buy recommendation within the range of Rs 248-250, targeting Rs 270, with a stop-loss near Rs 229 based on daily closing.
Canara Bank Review
Similar to Bank of Baroda, Canara Bank has formed a triple bottom structure in the Rs 102-103 range, signaling a potential slowdown in its long-standing decline. Currently, with its price hovering around Rs 113, the stock is also forming a bullish pattern near its 200-day EMA. A breakout above the bearish trendline in the Daily RSI further indicates an impending uptrend, making it advisable to buy in the range of Rs 112-113 with a target of Rs 122, and a stop-loss set at Rs 107 on a daily closing basis.
SBI Card Payment Services Projection
Having experienced a drastic fall of around 30% from its peak of Rs 933, SBI Card’s recent performance indicates resilience, holding strong above the Rs 675 support level. The formation of a bullish alternate pattern in the Rs 680-710 zone and a favorable analysis of the Weekly DMI suggest a positive sentiment. Investors are encouraged to buy this stock in the range of Rs 770-790 with an ambitious target of Rs 875. A risk management strategy should include a stop-loss order at Rs 735 based on daily closings.
Disclaimer: The views expressed are personal opinions of the experts and do not reflect the views of any entity managing the platform. It is recommended to seek advice from certified professionals before making any investment decisions.
