Reliance Industries stock quote: ETMarkets Smart Talk: RIL among 3 top stock ideas for this week from Sumeet Bagadia

, and are three stocks that according to Sumeet Bagadia, Executive Director, Choice Broking, would be at the top of his radar this week. “One can start a long position at CMP Rs 2,526. Hold a stop loss at Rs 2,450 at a target of Rs 2,650-2,700,” he adds. Edited excerpts:

Where do you see Nifty and Bank Nifty continuing in the November series? The November Series Put Call Ratio stands at 1.34, suggesting that bulls are taking the lead. On a sector basis, Nifty PSU Bank, Auto & Metal finished 3-5% on a weekly basis, while Nifty IT & Media closed on the downside. Technically, Nifty was trading with a higher high and higher low formation on the weekly charts, indicating a strong gain. The index has faced resistance from an upper band from Bollinger, suggesting that crossing the same band may continue upward momentum.

Support for Nifty has shifted about 17,600 levels. On the downside, Bank Nifty has support at 40,200 levels while resistance is placed at 41,800. Traders are advised to take a buy-on-dip approach until there is some change in the data and look for stock-specific opportunities with a positive bias.

With a 5.1% rally, Nifty PSU Bank proved to be the biggest sector winner of the week. Do you see momentum intact in the coming week? PSU Bank has remained material among the top players among other sectors. Overall, PSU’s banking stocks remained sharp relative to private banks and this has boosted long-term investor confidence.

, and are currently outperforming and taking the lead. PSU Bank is finally gearing up for a good move as volatility eases. Over the past month, PSU Bank has returned 19.65 percent and we expect the index to test 3,600 levels in the coming weeks.

Which PSU Bank Stocks Would You Look At Monday? Bank of India. On a monthly chart, the stock has broken through the accumulation phase and held above 55 levels, indicating strength for the session ahead. In addition, the stock has formed a bullish marubozu candle on the monthly chart, making the price bullish. On the daily chart, the stock is trading above 50 simple moving averages, confirming support from the price action. The daily momentum indicator Stochastic has shown a positive crossover, adding more bullishness to the price. Thus, based on the above technical structure, one can initiate a long position at CMP 58.70. However, on the safe side, one can also enter near Rs 57 levels. Close and hold above Rs 60 will lead to Rs 65-67 levels in the coming days. A stop loss can be held at Rs 54.

What does the chart look like for stocks? Any goals? The stock is developing a football pattern on the daily charts, supporting bullishness. On the daily chart, the stock is trading above 21 simple moving averages, confirming support for the price action. RSI plotted on the daily time frame is above 50 levels, reflecting the strong momentum in the stock. The Bollinger Band on the daily timeframe has begun to expand with volume participation, indicating that volatility in the underlying is increasing for an upward move. Therefore, based on the above technical structure, one can initiate a long position at CMP Rs 9,490. However, on the safe side, one can also get close to Rs 9,400 levels. Close and hold above Rs 9,560 will lead to Rs 9,800-9,900 levels in the coming days. A stop loss can be held as Rs 9,000.

What should be the trading strategy for Monday after the 20% rally on Friday? Infibeam Avenues is a mid-cap software company primarily focused on digital payment solutions and enterprise software platform provider. Infibeam rose 20.98 percent over the past week and especially during its Friday shutdown. Technically, the one-day delivery volume is up 71.49 percent from the 5-day average. The stock is also trading higher than the 20 and 50 day moving averages. We expect the stock to test the Rs 20-22 level in the coming weeks. We recommend a cautious positive approach for short-term traders.

What are the top 3 stocks that would be on your radar this week? Reliance Industries On a daily chart, the stock has breached the Ascending Triangle and managed to stay above the Rs 2,450 levels suggesting an upward move in the counter. In addition, the stock was trading above its 21-day moving averages, showing a positive trend for now. The daily momentum indicator Stochastic has shown a positive crossover, adding more bullishness to the price. Therefore, based on the above technical structure, one can initiate a long position on RIL at CMP Rs 2.526. Hold a stop loss at Rs 2,450 at a target price of Rs 2,650-2,700.

Kotak Mahindra Bank On the weekly chart, price action started strong traction above Rs 1,850 levels, confirming the bullishness in the stock. In addition, it also forms a higher high and higher low formation on the daily chart. The price is trading above Ichimoku Cloud in the hourly chart and positive crossover is indicated in RSI and MACD. Therefore, based on the above technical structure, one can initiate a long position at CMP Rs 1,884. Close and hold above Rs 1,925 will lead towards Rs 2,000-2,020 levels in the coming days. A stop loss can be held at Rs 1,820.

Oberoi Realty The stock is developing a double bottom pattern on an hourly chart, supporting the stock’s bullishness. On the daily chart, the stock is trading above its 21-day simple moving averages, confirming support for the price action. RSI plotted on the daily time frame is above 50 levels, reflecting the strong momentum in the stock. Hence, based on the above technical structure, one can initiate a long position at CMP Rs 905 but on the safe side, one can also get close to Rs 895-890 levels. Close and hold above Rs 920 will lead to Rs 1,000-1,030 levels in the coming days. A stop loss can be held at Rs 830.

(Disclaimer: Recommendations, suggestions, views and opinions of the experts are their own. They do not represent the views of Economic Times)

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