HDFC Securities sees Nifty downtrend continuing; Alkem Labs and Asian Paints among top picks

BY Subash Gangadharan

On the daily chart, we can observe that with the sharp fall seen last week accompanied with falling momentum readings like the 14-day RSI, the short term trend still remains down.

While the Nifty has bounced back and witnessed a pullback rally this week, the index is again showing weakness. There is a good chance that the current downtrend could continue once the immediate support of 18,973 is broken.

Rupee to trade between 83.60 – 84.10 in the near-term says CareEdge Ratings Momentum nowhere to be seen in Nifty this week, says Anand James of Geojit Financial Services Gold may see some profit taking but trend remains bullish says TradeBulls Securities Nifty to reclaim 25,000 next week, says Nagaraj Shetti of HDFC Securities

In this scenario, Nifty could correct towards the recent intermediate lows of 18,837. Immediate resistances are now at 19,096-19,159. 

Also Read

Tata Steel Q2 loss at 6196 crore; should you buy, sell or hold stock?

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

Alkem Laboratories: Buy 

Alkem Laboratories has corrected from an intermediate high of Rs. 4,243 tested in August 2023 and found support at the Rs. 3,447 levels in early October 2023, which also coincides with the previous intermediate highs, thereby indicating the change of polarity principle is at work as prior resistances are now acting as supports.

The stock has since then bounced back and broken out of its recent trading range last week on the back of healthy volumes. This augurs well for the uptrend to continue.

Technical indicators too are giving positive signals. The stock is currently trading above the 20 day and 50 day SMA. Daily momentum indicators like the 14-day RSI too are in rising mode and not overbought, suggesting scope for more upsides.

With the intermediate technical setup too 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 Rs 3,714 and Rs 3720. CMP is Rs 3,717.65. Stop loss is at Rs 3,540 and upside targets are at Rs 4,000.

Also Read

Sun Pharma’s shares advance on Q2 results; Should you buy, hold or sell the stock?

Asian Paints: Sell

Asian Paints is in a short term downtrend as it has been making lower tops and lower bottoms for the last few weeks. On Wednesday, the stock corrected sharply after a recent pullback, indicating it is set to move lower in the coming sessions. 

Technical indicators are giving negative signals as the stock is now trading below the 20 day  and 50 day SMA. Momentum readings like the 14-day RSI too are in decline mode and not oversold, which implies potential for more downsides.

We therefore expect the stock to correct further in the coming sessions. Sell between the Rs 2,934-2,940 levels. CMP is Rs 2,937.9. Stop loss is at Rs 3,009 while downside target is at Rs 2,850.

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

Related Posts

This AR laptop gives you infinite screens while having none-

One of the biggest banes of trying to get work done on a laptop is the single screen setup. If you’re used to dealing with multiple monitors, being reduced to one can be incredibly limiting, having to switch apps constantly rather than immediately having all the information required on screen. The rise in work from home has seen solutions to this problem start cropping up, but the AR screened Spacetop has got to be one of the coolest ones yet.

The Spacetop is arguably a new kind of laptop. Instead of boasting a screen and keyboard in clamshell configuration, the Spacetop is a full sized keyboard and glasses set up that gives you as many screens as you can want. It feels a bit like science fiction, but Wired recently went hands on with the device and it looks to be one that’ll work very nicely with our current reality. 

The setup weighs less than 1.5 kgs and is by no means a gaming laptop, but the technology could be great for PC gamers further down the line. In its …

There’s finally a demo for the Dark Souls 3 mod that transforms the whole game into a bizarro fan sequel to the series-

Dark Souls: Archthrones feels like a Souls series romhack, mashing up disparate parts of FromSoftware’s body of work in a custom campaign for Dark Souls 3. This is one for the fans, full of clever winks and references to other games in the series, but as one of those fans myself, I sure do not mind being pandered to.

From the jump, Archthrones’ opening level is a condensed homage to Demon’s Souls, featuring the same stinky potato boy Vanguard boss⁠—new school fans will recognize his moveset and animations from the Asylum Demon in Dark Souls and Erdtree Sentinels of Elden Ring. I thought I was a shoo-in for a first try victory against this clear “supposed to lose” boss, but at half health he whipped out a new funky moveset ripped straight out of Bloodborne’s Old Hunters DLC, and I was put in my place.

That kind of cheeky subversion of expectations gives me a lot of hope for Archthrones⁠—at its core this is an exercise in reference and imitation, bu…

Today’s Wordle answer for Saturday, August 17-

Getting your Saturday Wordle off to the best possible start is easy—just take a look at today’s freshly prepared hint and those winning green letters will appear in no time. And if you’re further down the board and things aren’t looking too great, just click through to the answer to the August 17 (1155) puzzle and turn your game around in a flash.

I’m not going to win any records for speed today, but this turned out to be a very satisfying win. A few early crumbs led me in the right direction, then I had a little bit of struggle followed by a last-minute plot twist before my triumphant turnaround right at the end. I basically Wordle’d my way through a mystery novel today—just call me Poirot.

Today’s Wordle hint

Wordle today: A hint for Saturday, August 17

This is a name for a particular sort of bad weather. When this is happening the skies will go dark and cloudy, and there’ll be heavy wind and rain too. Hail might turn up if it’s…

Powered by K-pop, an Among Us-like has smashed Among Us’ concurrent players record-

Never underestimate the dread power of K-pop. A month and a bit after online social deception game Goose Goose Duck burst onto Steam’s most-played charts on the back of a stream from BTS member Kim Tae-hyung, the game has already smashed through the concurrent players’ record of its inspiration, Among Us. Goose Goose Duck reached a peak concurrent player count of 563,677 earlier today, beating Among Us’ all-time high by over a hundred thousand players.

The incredible surge in popularity has actually proven a bit of a problem for the game’s devs, who tweeted a few days ago that their servers had buckled under the pressure. “We expected a large increase in players but not like this,” tweeted the game’s official account, adding in a later reply to a fan that the developers were “in communication with providers to drastically increase [their] capacity”. Service was restored in a few hours, but it’s clear that the game’s sudden success has been a surprise to its creators, similar t…

Today’s Wordle answer for Tuesday, March 19-

Looking for a helping hand to guide you through today’s Wordle? Then you’ll want to sneak a cheeky peek at our hint for the March 19 (1004) puzzle. Need something more, like a full shove towards today’s answer? Then you’re in luck because the solution is only a single click away.

Wow, today’s game really put up a fight. My very promising start felt great in the moment, it’s just a shame it didn’t seem to lead anywhere for far too many follow-up guesses. The Wordle win streak saving turnaround at the last minute did help make it all feel worthwhile in the end, though.

Today’s Wordle hint

Wordle today: A hint for Tuesday, March 19

If you accepted, or at least tolerated, someone’s decision, it could be said you agreed to _____ by it. This word can also mean “to stay” as well. There are three different vowels hiding in today’s answer. 

ViewViewViewView

Is there a double letter in Wordle today? 

There are no double letters i…

Ubisoft has ‘paused’ advertising on Twitter-

Ubisoft has confirmed that it has joined other major companies who have paused advertising on X, the social media platform formerly known as Twitter, following a Media Matters report which claims that the platform has been running ads for companies including Apple, IBM, NBCUniversal, and Comcast owner Xfinity next to pro-Nazi content. X denies that regular users will see such ads next to extremist content, claiming that Media Matters intentionally manipulated a feed to produce that result.

The list of companies who have halted activity on X is long and potentially extremely damaging for a platform struggling with a decline in advertising revenues: IBM, Apple, Disney, Warner Bros, Lionsgate, NBCUniversal, Xfinity, Sony, and others have all opted to stop running ads, at least temporarily.

Ubisoft is the first major game publisher we’re aware of that’s made the move. A rep confirmed the decision, first reported by Axios, in a statement provided to PC Gamer, although no furt…