23 Mar , 2023 By : Monika Singh
On the daily chart, we observe that Nifty has recently bounced back from the lower end of a downward-sloping channel. So while there is a possibility of a pullback rally emerging, we must remember that the intermediate trend remains down. This intermediate downtrend will continue if the recent low of 16,850 is broken. A pullback rally is likely if the Nifty can take out the immediate resistance of 17,211. Upside targets in this scenario are at 17,328-17,459.
SRF has corrected from an intermediate high of Rs 2865 touched in September 2022. The stock recently found support at the 2082 levels which also roughly coincides with the previous intermediate lows of the stock, indicating it is strong support. The stock has since then been gradually climbing higher and making higher tops and higher bottoms in the process. On Tuesday, the stock has broken out of a trading range on the back of above average volumes. The stock, therefore, looks set to continue its uptrend. Technical indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA. And daily momentum readings like the 14-day RSI are in rising mode after recently moving above its 9-day EMA. With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy. Our entry levels are between 2370 and 2380. CMP is Rs 2376. Stop loss is at Rs 2290 and upside targets are at Rs 2550.
Paytm has recently bounced back from the support of Rs 556. The stock had previously found resistance around the same levels in January 2023. This indicates the change of polarity principle is at work, as prior resistances are now acting as supports. On Wednesday, the stock has broken out of its recent 6-day trading range on the back of above-average volumes. Momentum indicators like the 14-week RSI too are climbing higher and are not yet overbought, implying the potential for more upsides. With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the Rs 627-632 levels. CMP is Rs 625.5. Stop loss is at Rs 575 while the target is at Rs 700.
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