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YES Bank shares jumped 32% in the week to witness a breakout with strong volumes, indicating a significant base formation on the technical chart.
“The support for the stock is established at Rs 27, and any pullbacks towards this support level present an opportunity to initiate fresh long positions. Sustaining above the support at Rs 27 could potentially lead to further upside, with target levels around Rs 35/38,” said Kunal Shah, senior technical & derivative analyst at LKP Securities.
Edited excerpts from a chat:
All the big events like Budget, Fed and RBI policies are behind us. The Q3 earnings season will also come to an end next week and Nifty ended this week on a flat note on the weekly scale. Do you see a direction emerging ahead in the days to come?
The recent earnings season brought a mixed bag of results, creating a tug-of-war between the bulls and the bears in the market. For a decisive move, the index needs to close above the 22,000 mark, potentially triggering short-covering rallies towards 22,600/23,000 levels. On the downside, the lower support is situated at 21,650, and a breach below this level could intensify selling pressure, pushing the index towards 21,400. Unless the mentioned levels are decisively breached on either side, the index might continue to consolidate in the near term.
Nifty Bank and Nifty PSU Bank indices exhibited opposite trends. Do you see a pause in the PSU bank rally?
PSU banks, particularly the major players like SBI, Canara Bank, and Bank of Baroda, have demonstrated significant strength, suggesting a bullish outlook. On the other hand, private banks have undergone a decent correction, making them attractive at current levels. However, confirmation of this trend reversal is essential. The Bank Nifty’s ability to hold the critical support at 45,000 will likely attract participation from both private and PSU banks, shaping the overall direction of the banking sector in the near term.
Looking at the rally in oil and gas as well as other energy stocks, what are the charts indicating ahead? Which stocks would be on your radar to ride the momentum?
Oil and gas as well as energy sectors have displayed remarkable outperformance over the last 2-3 months, maintaining a bullish undertone. Despite the positive trend, it is advisable to await a decent correction before considering a fresh entry. Oil India stands out as an attractive stock, and investors may consider initiating a buy position at the current market price or on any declines towards 450, with a stop-loss set at 400. The potential upside targets for Oil India are anticipated to be at Rs 620/660.
The rally in YES Bank shares has left its lakhs of shareholders excited. What are the targets now?
The stock has recently experienced a breakout with strong volumes, indicating a significant base formation on the technical chart. The support for the stock is established at Rs 27, and any pullbacks towards this support level present an opportunity to initiate fresh long positions. Sustaining above the support at Rs 27 could potentially lead to further upside, with target levels around Rs 35/38.
Give us your top ideas for the week
1.) BUY ACC AT 2620, SL-2540, TGT 2720/2800
RATIONALE: ACC has been exhibiting a robust uptrend, characterized by consistent higher highs and higher lows on the daily chart. The stock recently signaled a breakout from a bullish pennant formation, accompanied by notable volumes, indicating a strong bullish sentiment. The lower end support for ACC is positioned at 2500, offering a crucial level for bulls. The potential upside targets for the stock are projected at 2720/2780.
2.) BUY Dr. Reddy’s AT 6150 , SL-5940, TGT 6500/6700
Dr. Reddy’s Laboratories has exhibited a robust breakout from a cup and handle formation on the daily chart, supported by significant trading volumes. The momentum indicator, RSI, has provided a positive crossover and is currently trading above 60, confirming the bullish momentum. The stock has a lower-end support level at 5940, acting as a key level for potential bullish moves. According to the pattern analysis, the potential upside targets for Dr. Reddy’s Laboratories are projected at 6500/6700.
3.) BUY Adani Ports at 1270 , SL-1230, TGT-1370/1420
Adani Ports has demonstrated a strong and consistent uptrend, marked by higher highs and higher lows on the daily chart. The stock is currently trading above critical short-term moving averages, reinforcing the bullish sentiment. The support level is identified at 1230, serving as a key level for potential bullish movements. With the current technical setup, the stock presents potential upside targets at 1370/1420.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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