The Nifty 50, a major stock market index, has gained for the third week in a row and is now above all the downward trendlines. It recently crossed the 19,700 mark and is currently maintaining this level.
From a technical perspective, breaking the descending trendline and returning to the previous high suggest a positive trend.
However, it’s important to be cautious due to the high-beta, which is struggling to maintain its trend.
Resistance for Nifty is expected around 19,850-19,900, and if it surpasses this, it could reach a record high.
On the downside, support is observed at 19,580-19,500, with the potential to halt a decline in the 19,650-19,620 range.
Now, focusing on specific stocks, Osho Krishan, Senior Analyst at Angel One, recommends investing in Pidilite and Vardhman Textiles. Here’s the investment strategy for both stocks:
Pidilite
After a period of dormancy, Pidilite is showing signs of improvement. Although it’s currently booking profits, the last two trading days were positive.
The stock has crossed important Exponential Moving Averages (EMAs) on the daily chart with strong volume activity.
Additionally, it has broken the inverted head and shoulders pattern and the downward trendline, signaling a bullish trend.
A strong recovery is anticipated in the near term. Investors can consider buying Pidilite shares, setting a stop loss at Rs 2395, with a target price range of Rs 2,640-2,680. Buy within the price range of Rs 2,490-2,500.
Vardhman Textiles
Making a notable comeback from the 200 Simple Moving Average (SMA), Vardhman Textiles is now above all Exponential Moving Averages (EMAs) on the daily chart. The stock has bounced back from a declining phase, gaining momentum.
Strong indications of a trend reversal in the oversold zone are observed in the oscillators, suggesting a potential bullish trend in the near term.
Investors can consider investing in Vardhman Textiles, setting a stop loss at Rs 360, with a target price of Rs 400-410.
