Markets remain in a short term uptrend, buy Murudeshwar Ceramics, Godrej Industries

By Subash Gangadharan

On the Daily chart we observe that Nifty has taken out the recent swing highs of 18,135 and 18,201, indicating the uptrend remains intact. With the Nifty making a higher bottom at 18,055, we expect the Nifty to consolidate in a range between 18,055-18,450 in the near term. A bigger fall is likely only if 18,055 is broken.

The below picks are for the next 15-26 trading sessions

Buy Godrej Industries

Godrej Industries has corrected from an intermediate high of 489 touched in December 2022. The stock recently found support at the 395 levels which also roughly coincides with the previous intermediate lows of the stock, indicating it is a strong support. The stock has since then been gradually climbing higher and making higher tops and higher bottoms in the process. On Wednesday, 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 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 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 463 and 467. CMP is 465.8. Stop loss for Godrej Industries is at 443 and upside targets are at 500.

Buy Murudeshwar Ceramics

Murudeshwar Ceramics is in a healthy uptrend after recently touching a low of 27 in March 2023. This week, the stock has broken out of its recent trading range and closed at a 6 week high in the process. The stock also trades above the 20 and 50 day SMA and momentum readings like the 14-week RSI are in rising mode and not overbought. With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 37-39 levels. CMP is 38.05. Stop loss is at 35 while target is at 44.

(Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. Views expressed are author’s own. Please consult your financial advisor before investing.)