Shares of PSU NBCC were in the focus this week as it ended Friday’s session 19% higher at Rs 169.20, taking the week’s total gain to over 47% on the back of Budget’s thrust on housing.

“The sentiment and trend appear extremely bullish for the stock. On the higher end, it might move towards Rs 200 over the short term. Support is placed at Rs 150, which might act as a stop loss for those who buy on dips,” says Rupak De, Senior Technical analyst at LKP Securities.

GAIL, NDMC and BHEL are his top three ideas for the week. Edited excerpts from a chat:

The breakout that we saw on Friday in Nifty didn’t last the entire session. If the index crosses 22,000 again next week, what should be the targets?

Nifty surpassed the 22,000 mark during the first half of the Friday session but subsequently formed a double top on the hourly chart. A double top pattern in technical analysis suggests the potential for a bearish reversal. This development introduces uncertainty among the bullish traders, questioning whether the market will continue its upward trend.

Confirmation of a bullish trend resumption would only occur with a decisive breakout above the double top, which is currently identified around 22,125. Conversely, a break below the support level at 21,500 could indicate a bearish momentum.In the scenario of a breakout above 22,150, Nifty may experience upward momentum, potentially reaching levels such as 22,500 and beyond. Traders will closely monitor these key levels for further insights into the market’s direction.

Nifty Bank has bounced back with a 2.5% jump in the week. Which side of the trade would you be on next week?

During the week, Bank Nifty recovered by 2.50% on the back of buying in the banking space. However, Bank Nifty failed to move close above the resistance of 46,300, where the 21EMA lies on the daily timeframe. Also, a bearish engulfing pattern has formed on the daily chart. Going forward, only a move beyond 46,300 might instil bullishness in the space. Till then, sellers would remain active at the higher level. Support on the lower end is placed at 45,500.

Which stocks do you like within the PSU bank stocks? The Budget has sparked another round of buying in this pocket?
In the interim budget, emphasis was placed on both physical and digital infrastructure, with a focus on the modernization of railways, affordable housing, travel and tourism, and green energy. Therefore, one should continue to concentrate on housing, railways, defence, public sector banks, and power and energy stocks.

NBCC jumped over 47% in the week. What are the charts indicating at?

NBCC witnessed a spectacular rally following a breakout above Rs 146, reaching a swing high. The sentiment and trend appear extremely bullish for the stock. On the higher end, it might move towards Rs 200 over the short term. Support is placed at Rs 150, which might act as a stop loss for those who buy on dips.

Give us your top ideas for the week ahead

BUY GAIL 178.25 TGT 190 SL 174

On the daily chart, the stock has experienced a consolidation breakout, indicating increased optimism. Additionally, the stock has surpassed the critical moving average on the daily chart. Furthermore, the price rise was supported by an increase in volume. In the short term, the stock may move towards 190. On the downside, support is situated at 174.

BUY NMDC 236 TGT 250/260 SL 226

The stock exhibits a bullish trend with a clear higher high and higher low formation on the chart, indicating an upward trajectory. In today’s session, the stock convincingly broke its resistance at 226. The RSI signaled a double bottom breakout, currently in a bullish crossover with placement at 70. Considering these factors, initiating a long position in the stock within the range of 236-232, with a stop loss at 226, seems viable for an upside target of 250/260.

BUY BHEL 233.40 TGT 250 SL 224

On the daily chart, the stock has given a consolidation breakout, indicating increased optimism. In addition, the stock has surpassed the critical moving average on the daily chart. Furthermore, the price rise was supported by an increase in volume. In the short term, the stock may move towards 250. On the downside, support is situated at 224.

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