📷 Image Credits: Moneycontrol
In the ever-evolving landscape of the stock market, traders are constantly searching for opportunities to maximize their returns. Today, on July 08, 2024, Jigar Patel, Senior Manager – Equity Research at Anand Rathi, provides valuable insights on the market scenario and shares three stock ideas for healthy returns in the near term.
The Nifty 50 index recently exhibited a bullish trend, gaining 1.3 percent and closing above the crucial 24,300 level. The index confirmed a breakout from a rising channel, with a target of 24,200-24,400, reaching a high of 24,401. However, the foreign institutional investors’ (FIIs) long-short ratio in index futures has surged to 84 percent, signaling a heavy bias towards bullish positions. This suggests a potential for significant profit booking in the near term. Traders are advised to close their short-term long positions to capitalize on these gains. Immediate support levels are identified in the 24,000-23,800 range, emphasizing the importance of risk management in the current market environment.
In the Nifty Bank index, a narrow trading range was observed, with resistance around 53,000-53,400. A sustained move above 53,400 could extend the rally towards 54,000, while a close below 52,000 might indicate a temporary top. Therefore, key levels and trading strategies become crucial for navigating the market fluctuations.
Jigar Patel recommends three buy calls for the short term:
1. HDFC Life Insurance Company (CMP: Rs 607.35): The stock shows potential for a bullish trend after a breakout on the weekly chart. With significant violations of bearish trendlines and positive indicators on the weekly chart, the outlook for HDFC Life appears favorable. The recommended strategy is to buy within the range of Rs 595-610, with a target of Rs 660 and a stop-loss at Rs 575.
2. Cipla (CMP: Rs 1,509.9): Cipla displays a clean breakout on the daily chart, indicating a bullish trend. The stock’s consolidation phase and positive RSI levels support the bullish outlook. Traders are advised to buy within the range of Rs 1,500-1,510, targeting Rs 1,600 with a stop-loss at Rs 1,460.
3. SJVN (CMP: Rs 142): SJVN reveals a bullish trend after a breakout on the daily chart. The stock’s consolidation phase and positive RSI levels indicate a potential uptrend. Traders can take a long position within the range of Rs 140-142, targeting Rs 155 with a stop-loss at Rs 134.
In conclusion, Jigar Patel’s recommendations offer valuable insights for traders looking to capitalize on the current market conditions. By staying informed and adopting strategic trading approaches, investors can navigate the market with confidence and aim for healthy returns in the near term.
