Here's why Mehul Kothari expects NMDC, Wipro to gain in the near term

According to the technical analyst from Anand Rathi, NMDC can rally to Rs 124, while Wipro can surge to Rs 477-odd level.

BUY

NMDC

Buy Near: Rs 116

Target: Rs 124

Stop Loss: Rs 112

The stock NMDC has corrected almost 43 per cent from its top of Rs 175 which was made on April 11, 2022. From June 02 till July 31, the stock has been consolidating near the crucial support zone of Rs 100 - 108.

Recently on the weekly scale the stock confirmed a Bullish Harami candlestick pattern exactly at the mentioned support followed by healthy positive volumes and that could be a sign of early reversal.

In addition to the above discussed technical rationale, the counter has confirmed a breakout from the trading range of Rs 100-110 and has closed near Rs 116 mark. 

Thus. we advise traders to buy the stock for an upside target of Rs 124 with a stop loss of Rs 112.

BUY

WIPRO

Buy Near: Rs 439

Target: Rs 477

Stop Loss: Rs 420

The stock WIPRO has corrected almost 35 per cent from its top of Rs 609 which was made on April 05, 2022. On the weekly chart, it has taken support near its previous historical support zone Rs 400-410.

Since the last one month, the stock has made a nice base near Rs 420 level. Recently on the weekly scale, the stock confirmed a BULLISH HARAMI candlestick pattern exactly at the mentioned historical support and that could be a sign of early reversal.

In addition to the above discussed technical reasoning, the counter has displayed complex structure on RSI WEEKLY scale which is adding more strength in the said counter.

Thus, we advise traders to buy the stock for an upside target of Rs 477 with a stop loss of Rs 420.

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).