Tube Investments, HDFC Life; top stock picks by Rajesh Bhosale of Angel One

HDFC Life had already shown a bullish breakout on the weekly chart but consolidated within a rangedue to subdued market conditions

Nifty Outlook

Nifty witnessed a tug of war between bulls and bears; settles above 24850 mark. It was an action-packed week with significant movement on both sides of the trend. Given the heightened geopolitical tensions and weak earnings from key companies, the markets remained under pressure for most of the week.

During the initial hours on Friday, Nifty dipped below 24600, but thanks to strength in the banking sector, the benchmark index staged a strong recovery, eventually closing above 24850, ending the week with a 0.42 per cent loss.

Despite the volatility, a closer look at the daily chart shows that prices remained within a defined range. The upper boundary of this range, around the 20 DEMA at 25250, acted as resistance during the week, while the 89-day DEMA around 24600 once again demonstrated its strength, offering solid support during the markets panic phase. The next directional trend will likely be confirmed once prices break out of this zone.  From a pattern analysis perspective, a break below 24600 would confirm a & 'Head and Shoulders' pattern, signaling potential weakness, while a breakout above 25250 would confirm a minor double-bottom structure, sparking optimism ahead of the festive week.

 

Traders are advised to wait for a clear breakout before making aggressive bets in either direction. In the meantime, it's

recommended to focus on stock-specific opportunities, though caution is necessary, as many individual stocks faced sharp declines despite Friday’s bullish recovery.

Additionally, our markets under-performed relative to global peers this week, so it's essential to monitor global developments closely, as any further positive momentum abroad could fuel the above bullish breakout. Along with it, keep an eye on the ongoing earnings season, as it will continue to drive market sentiment.

Stock Recommendations:

NSE Scrip – TIINDIA

View -   Bullish

Last Close – Rs 4,480

For the past few months, the stock prices were trading within a range of 4,400 to 3,900. However, this week, they broke above the upper end, confirming a bullish breakout. This pattern is known as a channel breakout, and following the recent consolidation, the stock appears poised for a strong upside, potentially moving into uncharted territory. Prices are well above key moving averages, and oscillators remain in the positive zone, reinforcing the buy signal.

Hence, we recommend to 'Buy' TIINDIA around Rs 4480 - Rs 4,470 | SL: Rs 4,300 | Target:  Rs 4,,800

NSE Scrip – HDFCLIFE

View -   Bullish

Last Close – Rs 743

This stock had already shown a bullish breakout on the weekly chart but consolidated within a rangedue to subdued market conditions. This week, prices broke out of a continuation pattern known as a Pennant. The increase in volume over the last few sessions further supports this breakout. Additionally, both the daily and weekly RSI have crossed above 60, signaling strong positive momentum in this space.

Hence, we recommend to 'Buy' HDFCLIFE around Rs 743 - Rs 740 | SL: Rs 714 | Target: Rs 800