In the holiday shortened week, the Nifty is consolidating in the narrow range with very low volumes. In the week ended December 20, benchmark indices broke out from the important trend line resistance and now the level of 12,100-12,150 has become strong support for the Nifty. Immediate resistance for the Nifty is seen at 12,350. Any level above 12,350 could take Nifty towards 12,865 in the medium term.
BUY SUDERSHAN CHEMICAL (405): | Target Rs. 460 | Stop-loss: Rs 385
For the last eight weeks, this stock has been consolidating in a narrow range. The 50 DMA has acted as a strong support in the recent past. On December 23, the stock price closed at a 8-week high with rise in volumes, indicating higher chances of breaking out from the recent consolidation.
BUY TATA METALIKS (622): | Target Rs. 675| Stop-loss: Rs 600
The stock price has been consolidating for the last eight weeks in the range of 570 to 620. The stock price has formed multiple bottoms around Rs 570 in the recent past. Any level above Rs 620 would push the stocks towards the upside target of Rs 675. The stock price is sustaining above 200 DMA Resistance.
Disclaimer: Views expressed are the author’s own. He may have positions in one or all of the above mentioned stocks.