Chartist Talks: Last week, the 30-share BSE Sensex rose 524.04 points or 0.66 per cent. At the same time, a rise of 191.35 points or 0.80 percent was seen in the Nifty of the National Stock Exchange. Benchmark index Nifty has ended the calendar year 2024 on a strong note, delivering positive returns for the 9th consecutive year. Despite profit booking in the last quarter, Nifty closed at the level of 23644 in 2024 with a gain of 8.80%. Sudeep Shah of SBI Securities has suggested two stocks for January, which include a largecap and a midcap stock.
The first stock is Eicher Motors from the auto sector. He said, “The stock has given a 28-week consolidation breakout on the weekly scale. This breakout confirms the 50-week moving average with volumes above its average. Moreover, it has formed a big bullish candle on the weekly scale.” “Weekly RSI has risen above 60 points and is in an uptrend.” Experts recommend accumulating this stock at the level of Rs 5310-5250 with a stop-loss of Rs 5020. The stock may cross ₹5750 level and is likely to reach ₹5900 level in the short term.”
“The stock is on the verge of giving a consolidation breakout on the daily scale. The stock is trading at its all-time high, with all moving averages and momentum-based indicators indicating strong bullish momentum,” the expert said. The brokerage has advised to accumulate the stock at Rs 860-850 levels with a stop-loss of Rs 810. On the upside, the stock may test ₹940 level, and thereafter it is likely to reach ₹970 in the short term.
What is the expert’s opinion on FMCG index?
Do you see a tweezer bottom pattern in the FMCG index on the monthly chart? If so, is it a sign that it is time to start investing in this sector?
Responding to this question, Sudeep Shah said, “Yes, the index has formed a tweezer bottom pattern on the monthly scale, and on the daily scale it has formed an Adam & Adam double bottom pattern. However, both the patterns will be confirmed when the index crosses 58800. So, if the index rises above 58800 level, we recommend accumulating in this sector. According to the rule, the upside target has been kept at the level of 62,107.
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