This is why Paytm and BirlaSoft should be on your radar
The major indices – Nifty and Bank Nifty – witnessed strong buying momentum throughout the week, except for the last trading session. The index ended on a flat note. The outperformance continued in the Nifty PSE and CPSE index, which rose by more than 1%. The bears returned to the market as the benchmark Nifty closed the last day of the week down 1%. Throughout the week, the Nifty remained volatile before closing flat for the week. A profit posting of around 18,200 led to Friday’s fall, returning Nifty to its previous week’s close.
However, the short-term trend remains positive as long as the index remains above 18,000. A drop below 18,000 could push the Nifty into the 17,500-18,000 consolidation zone. On the other hand, a rejection from the 18,000 level could trigger another buying spree, pushing the Nifty back above 18,200; again, a decisive move above 18,200 could take it to 18,500-19,000.
The Bank Nifty bears took the lead and the index fell more than 2%, breaking support from the 43,000-42,800 zone. If the index stays below 43,000, it will witness a further correction towards the 42,500-42,300 zone where the next demand area is visible. The upside resistance at 43,000, if firmly knocked out, will lead to further short covering towards 43,300 levels.
Two stocks to watch for the near term:
Pay | Goal: €710-718
Paytm has made a breakthrough from a 10-day consolidation phase with volumes booming. The momentum indicator RSI has given a positive crossover and is trading above the level of €660, confirming the buy signal. The lower support is visible at the €670-660 zone which will act as a cushion for the bulls and be the potential upside targets €710/718.
BirlaSoft | Goal: €300
BirlaSoft has shown a consolidation break on the daily chart, signaling an increase in optimism. In addition, the price has remained above the critical moving average. The RSI is in a bullish crossover. In the short term, the stock is likely to move upwards €300. At the bottom, support is visible at €270.
The author, Kunal Shah, is a Senior Technical & Derivative Analyst at LKP Securities
disclaimer: The views and recommendations in this article are those of individual analysts. These do not represent the opinion of Mint. We recommend that investors consult certified experts before making investment decisions.
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