Stock Tips: Investors can earn a handsome profit of 10 percent by investing in these two stocks.
Market Outlook: Earlier this month, on January 3, 2022, Nifty broke the Falling Wedge Pattern on the Daily Chart and has strengthened by 3.60 percent so far. On the other hand, Nifty broke the bullish flag pattern in the weekly time frame and now it is slowly moving towards the lifetime high level i.e. 18600. If Nifty 50 is successful in crossing the level of 18600, then soon it can move towards 19 thousand. It is currently getting immediate support at the level of 18 thousand and 17900.
Talking about Bank Nifty, it was slippery for the first time on 13 January in the midst of 9 consecutive days of growth. However, on the weekly chart, Bank Nifty looks strong after forming a Hammer candlestick pattern and is getting support at the 21-week exponential moving average on the weekly chart. Bank Nifty is getting immediate support at 37600-37200 and facing resistance at 39200-39500. Talking about individual stocks, you can earn 10 percent profit on investment in Tata Motors and Indus Towers.
TATA MOTORS: BUY
Target: Rs 548 | Stop Loss: Rs 485
Returns: 08 percent
For the last one and a half months, its prices have remained in the symmetrical triangle formation and have made a trend line resistance at the level of Rs 498.
Tata Motors broke the upper band of the pattern at the level of Rs 503.70 on January 10, indicating an upside movement instead of sideways.
The share price of Tata Motors is above the Exponential Moving Average (EMA) of 21, 50 and 100 days on the Daily Time Frame which is a positive sign for the sentiment in the near term.
Momentum escalator RSI (14) is near 60, which gives it a chance to continue bullish.
INDUS TOWER: BUY
Target: Rs 300 | Stop Loss: Rs 260
Returns: 10 percent
Since last three months this stock is trading in lower low high formation and on daily time frame it has created a falling daily wage formation.
On January 12, it broke out the downward sloping trend line associated with a falling wedge pattern and managed to close above the 21 and 50 day exponential moving averages (EMA).
Bullik breakout in the lower low lower high formation is showing signs of bullishness. The Momentum Oscillator RSI (14) is near 60, indicating a continuation trend.
(Article: Rohan Patil, Technical Analyst, Bonanza Portfolio)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. digitnews.in Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)