The Nifty50 hit a record high of 20,285 points on December 1st, driven by renewed buying by foreign institutional investors, hopes that the US Federal Reserve will stop raising rates, and strong economic growth in India. Experts predict that the Nifty50 will reach 20,500 points soon, and 20,000 is expected to be a crucial support from here on. December has historically been the best month for the Nifty50, with an average return of over 3% for the last 29 years. This is a great time to invest in the Indian stock market and take advantage of the current growth trend.
AU Small Finance Bank: Despite some profit-booking, the trend for AU Small Finance Bank remains positive. Prices have closed above the cloud, and Supertrend on the hourly chart is providing strong support and resistance. The entire sector is up, so the outlook is positive. If the stock breaks above Rs 755, it could reach Rs 780, while Rs 720 is the nearest support on the downside.
Gufic Biosciences: Gufic Biosciences is in a strong uptrend, with prices closing above Rs 333 to confirm a breakout of the rounding bottom pattern. The ADX indicator shows strong directional strength, and the Ichimoku cloud is acting as a near-term support zone. Buying opportunities can be found on dips towards Rs 325 for a move towards Rs 350 levels, as long as Rs 315 holds on the downside.
Hindustan Unilever: HUL has given a breakout from its previous trading range and bear trendline violation, making it a lucrative option. Weekly RSI is consistently above 50 levels, and weekly DMI’s are positive, adding further confirmation of bullish bias. Buy in the zone of Rs 2,550-2,570, with a target of Rs 2,700 and a stop-loss of Rs 2,490 on a daily close basis.
Jubilant Foodworks: The counter is showing bullish signs, with a daily swing high of Rs 556 and price action sustaining above major exponential averages on a weekly scale. The daily RSI and DMI also confirm a bullish stance. Buy in the zone of Rs 560-570, with an upside target of Rs 655 and a stop-loss of around Rs 520 on a daily close basis.
Chambal Fertilisers and Chemicals: Chambal Fertilisers recently had a breakout on the weekly chart with huge volume, and the weekly RSI is about to enter the 70 zone, along with the weekly DMI turning positive. This makes it a lucrative option for traders to go long in the stock in the range of Rs 315-320, with a stop-loss of Rs 285 and a target of Rs 365.
SAIL: Steel Authority of India is trading above key moving averages, with an Inverse Head and Shoulder formation indicated in the daily chart. The price is also trading above the Ichimoku Cloud, and a positive crossover is indicated in the MACD. Resistance is at Rs 94, and a long position can be initiated at Rs 92.7 or Rs 91-92, with a target of Rs 102 and a stop-loss of Rs 87.
Britannia Industries: The stock has a positive bias, trading with the support of a middle Bollinger band on a weekly chart and forming a strong base around Rs 4,700 levels. Stochastic shows a positive crossover, adding more bullishness. Initiate a long position at the current market price, with a target of Rs 5,150-5,200 and a stop-loss of Rs 4,748.
Canara Bank: The stock is showing strength in price action, forming higher highs and higher lows and trading above key moving averages. MACD shows a positive crossover, and RSI is at 70 levels. Buy at the current market price or at Rs 410, with a target of Rs 440 and a stop-loss of Rs 397.
Sun Pharmaceutical Industries: Sun Pharma’s stock has broken out of a 15-week consolidation period and is expected to ascend further towards Rs 1,350. The stock found consistent support around the 12-week EMA, and the RSI is above 60 on higher time frames, indicating positive momentum. Place a stop-loss at Rs 1,170 on a closing basis.
HCL Technologies: The stock is in a robust uptrend, with no signs of lower lows or lower highs. A rounding pattern breakout and adherence to short-term averages on weekly charts affirm the uptrend, and the RSI is above 60 on both weekly and daily charts, indicating positive momentum. Target Rs 1,475 with a stop-loss at Rs 1,290 based on closing values.
Hero MotoCorp: The stock is in a robust upward trend, characterized by higher highs and higher lows and trading at all-time highs. Key breakout points in August 2017 and February 2021 confirm the upward momentum, and the stock is trading above its 200-week EMA with supportive volumes. The stock’s relative strength against the Nifty, as depicted in the ratio chart, is also noteworthy, with a breakout from a downward-sloping trend line since August 2017 indicating outperformance of the broader market.
