Nifty has formed a Doji pattern on its weekly charts which clearly indicates indecisiveness between bulls and bears. It has closed at a new all-time high and sustaining above the 20-day SMA. Nifty Metal has rallied 4.76% and Nifty Bank rallied 1.76% last week. Markets witnessed profit booking at higher levels. The expiry of November contract brought some selling pressure which led to a healthy correction in the market. As long as Nifty respects the support level of 12,800 it is likely to test its level of 13,200.
Markets are awaiting major events like RBI policy meeting, the release of Manufacturing and Service PMI and auto sales data which will be decisive factors driving the market in the upcoming week. Nifty would find resistance at 13,100-13,150 and support is placed at 12,725 and 12,600.
Here are few top picks for the week:
1. BUY: L&T (NS:LART) Technology Services Ltd (NS:LTEH) (ABOVE - 1751)
TARGET: 1855
STOP LOSS: 1670
This stock has given a trend line breakout in its daily charts and taking the support of the trend line. It has resistance placed in 1750. Also, it is trading above its important moving averages. Any breakout above the level of 1750 would add further upward momentum to the stock. We recommend initiating buy position above Rs.1751 with an SL of Rs.1670 and TGT of Rs.1855.
2. BUY: Welspun Corp Ltd (NS:WGSR) (ABOVE - 124)
TARGET: 160
STOP LOSS: 95
This stock has been in a consolidation phase in its weekly charts and is trading above its important moving averages. Any breakout above the level of 124 would add further upward momentum to the stock. Therefore, we recommend initiating buy position above Rs.124 with a stop loss of Rs.95 and a target of Rs.160.
Disclaimer: The analyst does not hold a position in any of the stocks mentioned above.