Here is why United Spirits and Apollo Tyres look attractive
The weekly wrap indicates that the headline index, likely referring to a major stock market index like the Nifty50 or Sensex, closed flat. This means that the overall market movement during the week did not result in significant gains or losses for the index. However, the smaller-cap and mid-cap segments of the market outperformed during the week. This suggests that the stocks in these categories experienced relatively stronger buying interest or positive price movements compared to the larger-cap stocks. Additionally, profit booking was observed at higher levels, indicating that traders or investors were selling their holdings to lock in profits as prices reached elevated levels.
After a weak expiry session yesterday, Nifty opened flat and selling pressure was seen in the index, and nifty closed at 18,563 in spot. The undertone of the index has turned sideways from bullish, where 18,500 in spot remains the support where maximum open interest has been seen in put data and 18,700 is the new resistance for the nifty where maximum call writing has been seen. A break on either side of the levels, can lead to further trending moves in the index, till then nifty will remain in consolidation phase.
Bank Nifty
The Bank Nifty index is currently experiencing selling pressure as the bears maintain their control at higher levels. The resistance zone between 44300 and 44500 has proven to be strong, preventing the index from making significant upward moves. On the downside, there is a support level at 43700, which has the potential to act as a buying opportunity. If the index manages to hold above this support level, it could attract buyers who see it as a favorable entry point. It is important to monitor the price action around these key levels, as a break above the resistance zone or a breach below the support level could indicate a potential change in the market sentiment and trigger further directional moves.
Target: ₹920-950 | Support: ₹860
The stock of McDowell-N has recently experienced a breakout on the daily chart, accompanied by significant volumes. This breakout is represented by a flag pattern, which indicates a potential continuation of the previous upward trend. The momentum indicator, RSI, has also shown a positive crossover, further confirming the strength of the stock’s current upward momentum. On the downside, there is a support level at ₹860, which has held firm in recent trading sessions. This support level acts as a cushion for the bulls, indicating that buying interest remains strong. In terms of potential upside targets, the stock could potentially reach levels of ₹920 and ₹950. These targets are derived from the breakout and the continuation of the upward trend.
Target: ₹450 | Support: ₹395
The stock of Apollo Tyres is currently in a strong uptrend, displaying positive price momentum. It has recently experienced a fresh breakout accompanied by volumes, indicating a potential continuation of the upward movement. In terms of support levels, the stock has been finding support at its 5-day Exponential Moving Average (EMA) placed at ₹395. This indicates that buying interest is present around this level, providing a support zone for the stock. As for potential upside targets, the stock has a target of ₹450. This target is based on the current trend and the breakout that has occurred.
The author, Kunal Shah is Senior Technical and Derivative analyst at LKP Securities
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 11 Jun 2023, 08:26 AM IST
