Stocks to buy: Expert lists SPARC, CSB Bank and Eicher Motor as to buy and sell
Index shied away from 20k by few points before heavy selling pressure observed on last trading session of the week due to disappointing results by IT sector. Index has risen consecutive 18 weeks with gain of 18% at a stretch. On weekly chart, Index has formed shooting star pattern and it is showing buying climax symptom but it need to breach support level to validate its implication. Nifty has immediate support at 19700 level. Index can slide up to 19500 to 19300 in next week if index moves below 19700 level. On higher side index will have stiff resistance 19850 followed by 20000.
In a previous week, Banking, pharma and some oil & gas stocks did well while selling pressure observed in IT, cement and chemical stocks.
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Bullish Stock of the Week
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Stock has formed inverted Head and shoulder pattern with duration of 28 months, started in year 2019. In the recent context, stock is retesting the breakout level followed by breach of falling trendline which is bullish continuation sign. Long term moving average has also provided cushion to fall in the stock.
On weekly chart, after forming double bottom stock has started to form higher high and higher low sequence.
On daily chart Stock has moved above long term moving average and tracking short term moving average very closely. Stock has retraced to mid-point of expanded range candle followed by buying interest. In previous episode, similar structure has been formed. It is forming potential flag pattern which is bullish continuation sign.
Based on aforementioned rationale, Stock looks good to buy in the range of 230 to 220 with stop loss of 205 on closing basis. On higher side stock has immediate upside potential up to 260 level and in midterm it can improve up to 300 level.
CSBBANK Weekly Chart:
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In recent context of market, financial stocks are on the move wherein mid and small cap stocks are leading in performance. On such stock is CSBBANK, which has very clean technical structure. After finding the bottom at 1st (lower horizontal line), stock has travelled in upward sloping channel. Recently stock has retested the breakout level followed by strong upside move.
It offers good accumulation opportunity in the range of 290 to 280 level with stop loss of 265 level. Stock has upside potential upto 320 level followed by 350 level.
Bears Ear
Eicher Motors Daily Chart
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Stock has underperformed the auto index and its peer stocks. It show weak relative strength. Recent upside move (tiny upward channel) halted at moving average and horizontal line resistance with bearish follow up sign. Technically, stock has form inverted flag pattern which is bearish continuation sign.
Stock offers a short opportunity at current level with stop loss of 3350 level and downside potential can be upto 3200 level.
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Updated: 23 Jul 2023, 01:36 PM IST
