Top 2 Short Term Sectoral Picks for April Series 5/5 (3)

Trading Calls

Nifty has been showing immense strength since the start of March series and has already moved up 8-9% from lows 10,822. This strength is well reflected in stocks which have been running quite strongly over the past few weeks. I have collated 2 stocks as my short term picks.

Bajaj Finance

I have been maintaining a bullish stance on this stock since last few weeks and it is back on our buying list!

The stock has been trading in a positive price channel since last six months indicating a constant surge in demand. Weekly charts of the stock also display a Fibonacci retracement of 30% from the then highs of 2997/-, in October 2018. This retracement got into buying and we have witnessed a strong support being formed at this 2000/- odd levels. The stock is now at the brim of resistance at 3000/- and a break above this level would imply new set of buyers in the counter.

Momentum Oscillator, RSI is also trading above 70 in the overbought area, which again reflects strength in the counter (Learn more about Indicators in our Basic Technical analysis Module. Check this link for details).

My outlook for the stock in Short Term & Medium Term is Positive.

Technical Pattern: RSI above 70

Action
Trigger Price
Stop Loss
Target 1
Target 2
BUY >3036 2990 3080 3130

Check out our Short Term Trading Performance for calls released in January, 2019

(2) UPL

The stock has given a strong breakout above 910/- levels on all time frames and is already trading at new highs. Price moving in uncharted territory shows strength in the stock and indicates the interest of buyers to pay higher prices for the stock. The robustness of the stock is also reflected in Bollinger Bands which shows candlestick price cation above the middle band and a tagging of upper band (Learn more about Bollinger Bands in our Advanced Technical analysis Module. Check this link for details).

My outlook for the stock in Short Term & Medium term is Positive

Technical Pattern: Bollinger Bands

Action
Trigger Price
Stop Loss
Target 1
Target 2
BUY >963 950 980 1005

 

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The above analysis is based on closing prices as on 29th March, 2019 & Trading levels mentioned in the post are valid upto 1 month

Disclaimer: All views expressed in this site are for reference only. Readers must consult their own investment adviser  before taking any investment/trading decision. We hold no financial liability to any user on account of use of information provided on this website.

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Author: Traders' Chowk

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