While Nifty maintains in an uptrend, buy these two stocks for gains; resistance is at 17800.

  • Aug. 4, 2022, 1:01 p.m.

On the Daily Nifty chart, we can observe that after recently touching a low of 15183, the Nifty has been consistently rising and making higher tops and higher bottoms over the last few weeks. In the previous week, the Nifty 50 index crossed the previous intermediate high of 16794, thereby reversing the recent intermediate downtrend. The Nifty also comfortably trades above the 20-day and 50-day SMA and the 14-week RSI too is in rising mode and not overbought. The Nifty could now be headed towards a downward sloping intermediate trend line resistance at around the 17800 levels in the coming sessions. Short-term weakness or consolidation is however not ruled out.

Buy Strides Pharma Science

Strides Pharma Science has shown relative strength this week. While the Nifty index has gained 1.37% this week, Strides Pharma Science has gained 6.32% over the same time period. Zooming into the daily chart, we can observe that the stock has made a double bottom around the 263 level and broke out of the recent trading range on Wednesday on the back of above-average volumes. The stock is now trading above the 20-day and 50-day SMAs. And momentum readings like the 14-week RSI are in rising mode and not overbought, which implies the potential for more upside. 

With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 348 and 355 levels. CMP is 352.4. The stop loss is at 330 while the target is at 390.

Buy UTI AMC.

UTI AMC has been rallying higher for the last few sessions after finding support at the 595 level. In the process, the stock has broken out of its recent trading range. Technical indicators are giving positive signals as the stock is trading above the 20-day and 50-day SMA. Recently, there was a positive moving average crossover as the 20-day SMA moved above the 50-day SMA. Momentum readings like the 14-day RSI are in rising mode. 

With the intermediate technical setup also looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 720 and 734 levels. The CMP is 731.55. The stop loss is at 670, while the target is at 825.

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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