Technical data

RailTel, Shipping Corp and Tata Coffee could offer a 10-15% return in the short term: Angel One’s Aamar Deo Singh

Aamar Deo Singh, Chief Advisor, Angel One Ltd said the domestic stock market will continue to consolidate over the coming week, with a strong struggle between the bull camp and the bear camp, but there will be stock-specific action.

In an interview with ETMarkets’ Kshitij Anand, Singh said open interest (OI) data in the current April series for Nifty50 indicates a short accumulation, and signals from technical indicators suggest that Nifty is likely to rise. trading in the 17,250-17,750 range. Edited excerpts:

Q) In the holiday-shortened week for the market, the bears remained in check and we saw a pullback on Wednesday. What led to the price action?

A) The market has continued to trade sideways over the past few trading sessions due to inflationary concerns, rising crude oil prices and the ongoing conflict between Russia and Ukraine.

However, with companies releasing quarterly results in the coming weeks, this will play a crucial role in determining the overall market trend.

The shortened week saw the benchmark Nifty and Bank Nifty indexes correct 1.74% and 0.76% respectively. Additionally, with Wednesday being the weekly expiration day, this led to increased volatility in both directions.

Q) What is your call on market for this week? Are there any key levels investors should watch for Nifty and Nifty Bank?

A) The market will continue to consolidate this week with a strong struggle between the bull camp and the bear camp.

Open Interest (OI) data in the current April series for Nifty50 indicates a short accumulation, and signals from technical indicators suggest that Nifty is likely to trade in the 17,250-17,750 range.

A few technical indicators such as moving averages and the ADX, a trend-determining indicator, indicate sideways play next week.

Only a breach above or below the mentioned range could trigger a sharp move in either direction. As for Nifty Bank, 36,600 – 37,800 is the range to watch this week.

Q) What’s brewing at Bharat Dynamics – the stock is up over 30% in the last 5 days. How should investors approach if they plan to put in fresh cash?

A) Bharat Dynamics has witnessed a spectacular rally so far this year. It’s up almost 89% year-to-date (YTD) with big gains coming in April.

Whenever we see such sharp upward movements in a stock, where the angle of ascent is greater than 45 degrees, one should be careful when entering such stocks.

However, Bharat Dynamics charts continue to show strength as the uptrend remains intact; therefore, any decline in price towards the Rs 600-650 area could be an ideal buying opportunity, with major technical support now seen around the Rs 540 levels.

Q) Developers Kolte Patil formed a death cross on the charts on April 12, according to data from Trendlyne. It is trading below the crucial moving averages. A value pick where investors should ideally stay away – what do you recommend?

A) Kolte Patil is clearly a range play in the current scenario, with most technical indicators pointing to a consolidation in the stock.

The stock has a well-defined support zone around Rs 240-250, which could be a good entry level as the stock has always maintained these levels. On the upside, Rs 310-320 should act as a crucial resistance zone.

Those interested in range play might get good opportunities in the mentioned range, as the stock, even on the long-term charts, is not showing any trend at the moment.

Q) What are your top 3-5 trading ideas for the next 3-4 weeks? Please give a small justification with the objective and the stop-loss?

A) Here are some trading ideas for the next 3-4 weeks:

RailTel Corporation of India: Buy at Rs 108 | LTP Rs 110.95 | Objective Rs 127 | Stop Loss Rs 97 | More than 15%

The stock experienced a strong breakout on high volumes, pushing the stock above the 100 rupees mark, which is bullish in nature.

Shipping Corporation of India: Buy at Rs 130 | LTP Rs 133.90 | Objective Rs 148 | Stop Loss Rs 121 | 14% increase

The stock trend remains positive. It is trading above key moving averages. Volumes have also seen a gradual increase over the past two trading sessions, suggesting a strong upside.

Cafe Tata: Buy at Rs 215-218 | LTP Rs 221 | Objective Rs 243 | Stop Loss Rs 203 | More than 10%

The stock continues to show positive momentum thanks to the strong volumes seen a few days ago. The stock is trading above the Rs 225 levels and has the potential to rally towards the Rs 240-245 levels.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)