Hot Stocks | Bet on PB Fintech, Mahindra CIE Automotive, Shivalik Bimetal Controls in short term
PB Fintech has shown a rebound after testing the neck of the Cup & Handle pattern, which had given a breakout two weeks before – a reversal pattern. This breakout is further confirmed by higher trading volume.
The Nifty has shown a bearish trend in the short to medium term as observed on the weekly charts. A large bearish candle was formed after a Spinning Top candlestick pattern, confirming a bearish undertone.
In addition, the 20-week SMA (simple moving average) acted as resistance, causing prices to turn lower. On the daily charts, the lower top and lower bottom formation persisted throughout the week, with seven consecutive bearish candles indicating a negative trend.
The weekly RSI (Relative Strength Index) showed a lower low, lower high pattern, reflecting a lack of positive momentum.
Looking ahead, the immediate support level for the Nifty is at 17,350 (swing low), followed by 16,747 (key support). Conversely, resistance levels are at 17,770 (key resistance) and 18,000 (weekly high).
It is expected that the index may continue to fall towards 16,747 if it falls below 17,353.
Here are three buying calls for the next 2-3 weeks:
Mahindra CIE Automotive: Buy | LTP: Rs 448.60 | Stop-Loss: Rs 400 | Target: Rs 520 | Return: 16 percent
Mahindra CIE Automotive stock showed a remarkable uptrend since the last week of May 2022. The ongoing inverse head and shoulders pattern suggests strong market interest and optimism in the continuation of the stock’s previous uptrend.
Increasing volumes accompanied by higher volumes indicate a long build-up behind the stock.
The 20-week EMA (exponential moving average) has served as excellent variable support for the stock, and prices have found support before the breakout.
Ratio charts against the Nifty Auto Index show a multi-year breakout that highlights the stock’s strong outperformance and suggests that it may continue to outperform.
The expected price target for the stock is Rs 520, with a stop-loss of Rs 400 on a strictly closing basis.
Shivalik Bimetal Controller: Buy | LTP: Rs 445.30 | Stop-Loss: Rs 410 | Target: Rs 520 | Return: 17 percent
Shivalik Bimetal Controls has shown a remarkable rise in its share price since its IPO on 21 July 2021. Despite experiencing a correction from 18 April 2022, the prices did not breach the supports and underwent a polarity reversal around Rs 370 level. This observation emphasizes the resilient nature of the stock’s price movement during the correction phase.
The recent breakout of the descending triangle pattern indicates that the stock is ready to climb higher levels.
Examining the daily time frame for the stock, it is clear that the stock price is currently trading above the key moving averages, including the 50-day, 100-day and 200-day exponential moving averages (EMA). This observation confirms the presence of a bullish trend in the stock’s price movement.
The RSI on the weekly timeframe has also given a breakout showing the strong bullish momentum.
Going forward, we expect the prices to move higher to the level of Rs 520, where the stop-loss needs to be Rs 410 on a closing basis.
PB Fintech: Buy | LTP: Rs 576.80 | Stop-Loss: Rs 525 | Target: Rs 680 | Return: 18 percent
PB Fintech’s stock prices have recently crossed the Rs 501 level, indicating the beginning of an uptrend through the formation of higher highs and higher lows.
In addition, the stock has shown a rebound after testing the cut-out of the Cup & Handle pattern, which had broken out two weeks before – a reversal pattern. This breakout is further confirmed by higher trading volume.
Also, the 17-week exponential moving average (EMA), which previously acted as resistance during the downtrend, now acts as support, reinforcing the uptrend.
On the weekly time frame, the Relative Strength Index (RSI) has shown a shift in range, indicating an increasing momentum in prices.
Looking ahead, we expect prices to continue rising till they reach the Rs 680 level, with a recommended stop-loss of Rs 525 on a closing basis.
Disclaimer: The views and investment tips expressed by investment experts at Moneycontrol.com are their own and not the site’s or its management. Moneycontrol.com advises users to check with certified experts before making investment decisions.
