Nifty will face resistance at 17500 and 18000 levels; TCS, Bharti Airtel among stocks to buy this week

On the downside, support is placed in the 16800 and 16500 zones. (Image: Reuters)

By Rahul Shah

After a long time, the front seat is unsteady india much add At 18 plus. With the detection of a new COVID-19 variant, sentiments in the global equity markets were tempered. Despite this sell-off, India still remains the top performer in the current calendar year, with a flat performance of Nifty 21% versus the MSCI EM index. The RSI oscillators on the daily and weekly charts are showing a reduction in momentum, but at the same time the slope of the indicator is not indicating an immediate sharp downside in the market.

Considering the overall chart structure, we are expecting the index to trade in a broad range volatile manner. On the upside we can expect resistance at the 17500 zone and then at 18000. On the downside, support is placed at the 16800 and 16500 zones. On the other hand, fundamental and macro picture looks promising, with continued pick-up in the economy, high-frequency indicators crossing pre-covid levels. Both GDP numbers and GST collections were strong and indicated a clear growth path in the future. We expect sector rotation in the market to continue and defensive ones like IT, Telecom and Consumers will come back till sentiments improve. Equity valuations are now relatively more reasonable after the sale of Rs. In the coming week, we are confident that the markets will be more of stock-specific Happy Trading!!!

Week Select:

TCS – Buy

Stop Loss: Rs 3580 | Target: Rs 3800

TCS Formed a strong base near 200 EMA and gave a consolidation breakout around 3570 on the daily chart. Showing further strength in the weekly scale and thus counter, we advise traders to buy the stock with a stop-loss of 3580 for a move towards 3800.

Bharti Airtel – Buy

Stoploss: Rs 695 | Target: Rs 770

Bharti Airtel A high top-high bottom pattern is forming on the weekly scale indicating that the trend is up. It is trading near its lifetime high zone and is reaching a higher level with strong momentum on the weekly and monthly charts. RSI Oscillator Positive which will support this move. Higher Levels Looking at the overall price structure, we are expecting the stock to move towards the 770 zone, therefore, we recommend traders to buy the stock with a stop-loss of 695.

Grasim – Buy

Stop Loss: Rs 1660 | Target: Rs 1825

On the daily chart, after an upward move, the stock has corrected from its all-time high of 1893 and made a low of 1650 in sync with the market correction, pulling back from its support of 1650 and at 1702. Smart is back. , Moreover, the incremental volume activity in the support area is indicating a reversal from the current levels. Buy on the order of 1660 with a target of 1825.

(Rahul Shah is Senior Vice President, Group Advisory Leader-PCG, Broking & Distribution Motilal Oswal Financial Services, The views expressed are those of the author. Please consult your financial advisor before investing.)