RIL shares blinking buy after breakout on daily chart: Kunal Shah

economictimes.indiatimes.com:

RIL, Canara Bank and Tata Motors DVR are top 3 trading ideas of the week by Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

"Reliance Industries has recently experienced a breakout on the daily chart, accompanied by a significant surge in trading volumes. This breakout suggests renewed bullish momentum in the stock," he says. Edited excerpts from an interview:

Given the broad-based buying seen in the market last week, do you think Nifty will easily scale the 20,000 peak ignoring all the concerns around the spike in crude oil price and dollar? What are the targets?
The market is currently characterized by bullish momentum, driven by increased participation from large-cap stocks.

The Nifty Index, after breaking through the significant resistance level of 19,600, now sees it acting as support on any potential pullbacks. This sets the stage for the index to potentially surpass the 20,000 level in the upcoming week, as buying interest grows among large-cap companies.

Notably, Reliance Industries is expected to play a crucial role in driving the index past the 20,000 mark.

Nifty PSE and Nifty CPSE stocks were the top performers in the week. Do you see any signs of the PSU indices being at an overbought stage?
PSU stocks are currently driving the market, as evidenced by the Nifty PSE Index surging by 9% in the month of September.

However, the index has entered overbought territory, indicating that some profit-taking might occur soon. Despite this, the overall market sentiment remains extremely bullish, and any dips in PSU stocks are seen as buying opportunities, potentially leading to fresh all-time highs.

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