Balrampur Chini among Rupak De's top 3 stock ideas for the week
Balrampur Chini, Tata Motors and ICICI Lombard are top 3 stock ideas of the week from Rupak De, Senior Technical Analyst, LKP Securities.
“Balrampur Chini has given a swing high breakout on the weekly chart, suggesting a rise in optimism. The weekly RSI is in bullish crossover with an indication of strong price momentum. Over the short term, the trend might take the stock towards Rs 570. Support on the lower end, is placed at Rs 500,” De says.
Edited excerpts from a chat:
Nifty has been largely stuck in a narrow trading range of 400-500 points for the last few days. After Friday's upside, do you see signs of a fresh breakout on the upside?
Lately, Nifty has been moving within a range of 400-500 points, with boundaries at 24000 and 24400. Although on Friday, Nifty showed initial signs of breaking out from the recent consolidation, a follow-up rally is needed to confirm the continuation of the new uptrend. Therefore, Nifty might witness a decent rally in the near term only if it decisively moves above 24550; otherwise, it could fall back into consolidation once again.
Most of the upside in the market is being led by IT while banks are underperforming. Do you think the next leg of the rally could be led by Nifty Bank?
While the IT sector has the potential to continue outperforming the Nifty in the near term, Bank Nifty appears poised to catch up in the coming weeks after a period of underperformance. The individual charts of several banking stocks suggest a good recovery in the near term, which could fuel a rally
