Technical Picks This Diwali 2021
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Technical Picks
This Diwali 2021
Happy Diwali
Auspicious moments call for auspicious beginnings. Here's a list of
technical picks for your portfolio, as we step into a new Samvat.
SBI Cards
UPL
G M Breweries
TVS Motor
State Bank of India
We hereby present our top Technical recommendations for this new Samvat 2078.
Reach us at 1800 309 1800 or inquiry@marwadionline.in
/marwadihq
Disclaimer: https://bit.ly/2RK2tzcTechnical Picks 2021
SBI Cards UPL G M Breweries
CMP Target CMP Target CMP Target
Rs. 1,075 Rs. 1,570 Rs. 720 Rs. 1,030 Rs. 767 Rs. 1,100
Stop Loss Stop Loss Stop Loss
Rs. 747 46.00% Rs. 574 43.00% Rs. 600 43.00%
TVS Motor State Bank of India
CMP Target CMP Target
Rs. 697 Rs. 950 Rs. 522 Rs. 750
Stop Loss Stop Loss
Rs. 490 36.00% Rs. 399 44.00%
Note: Closing Prices as on 2nd November 2021.
Disclaimer: https://bit.ly/2RK2tzcMarket Outlook
Nifty saw a healthy correction in the month of October
2021 and in that process it has formed a “Shooting
Star” Candlestick pattern which is a bearish reversal
pattern. The similar kind of pattern is formed on many
other Indices as well as stocks indicating that the
October highs become a crucial resistance going
forward and till those levels are not taken off the overall
momentum will be sideways to negative. So, the
resistance on the upside is 18605 levels positional
point of view whereas 18343 is an immediate
resistance in the short term. The momentum indicator
MACD has gone into sell mode with a negative
divergence whereas the weekly and monthly
momentum indicator are still into buy mode indicating
that the short term trend is negative whereas long term
trend is still positive. The Quarterly MACD is also well in
the buy mode which further confirms the long term
trend. The volumes however, have dipped since the
first sell crossover indicating overbought positions and
exhaustion at higher levels, hence Index started to
witness profit booking from higher levels. On the lower
side, 17400 is an immediate support whereas 17000 is
important support from positional point of view. Nifty
has taken a good support at its 50 DEMA recently
which is 17563 and a break below that will lead to
further selling pressure and till those levels are held the
bounce can continue on the upside. Our overall view is
cautious at current levels and bullish stock specifically
hence we have recommended quite few selective
technically and fundamentally better risk-reward
stocksMarket Outlook
BSE SENSEX too has formed a “Shooting Star”
Candlestick pattern which is a bearish reversal
candlestick pattern and till the recent swing highs of
62246 approximately are not taken off the overall short
to medium term trend remains sideways to negative.
The Index has seen 6 consecutive positive closes;
however, with this candlestick formation the probability
of a reversal is quite high. The resistance in the short
term is 61576 whereas the immediate support is
pegged at 59000 levels which if broken will take the
Index to 56600 levels. So, overall our view is sideways
to negative, however, there are few stocks wherein the
opportunity is in favor of the bulls, hence those should
not be missed hence we have recommended them as
Diwali Picks.CMP: ₹1,075 Target: ₹1,570
SBI Cards Stop Loss: ₹747 Upside: 46%
Investment Rationale:
The stock has been consolidating since more than 6
months in a triangular pattern. The move prior to this
consolidation was an impulsive move which is a five
waves rising structure which is positive for the long
term. The stock has been holding its 20 weekly
exponential moving average and the lower end of the
range is well supported by the 50 weekly exponential
moving average. The stock has also retraced 38.20% of
its entire up move so far and it’s likely to hold the lower
end of the range. Once this consolidation is over, the
stock is expected to provide a breakout on the upside.
The target on the upside is 1570 whereas the stop loss
or reversal is 747, hence there is a almost a risk to
reward of 1:1.58 which is favor of the bulls.
Note: Closing Prices as on 2nd November 2021.
Disclaimer: https://bit.ly/2RK2tzcCMP: ₹720 Target: ₹1,030
UPL Stop Loss: ₹574 Upside: 43%
Investment Rationale:
The stock has fallen in a downward sloping channel
and it seems to have completed its wave 4 down at
38.20% retracement levels. The stock has also taken a
good support at its lower end of the rising channel;
hence a probability of a wave 5 from here on is quite
high. The momentum indicator MACD has been
showing positive divergence on the daily charts and it’s
too oversold on the daily as well as weekly charts
however on the monthly charts the MACD is well into
the buy mode i.e. in favor of the bulls. The target on the
upside is 1030 i.e. above the all time highs of 864
levels. So, we recommend buying UPL as the risk to
reward is 1:2 which is well in the favor of the bulls.
Note: Closing Prices as on 2nd November 2021.
Disclaimer: https://bit.ly/2RK2tzcCMP: ₹767 Target: ₹1,100
G M Breweries Stop Loss: ₹600 Upside: 43%
Investment Rationale:
The stock has reversed from 78.60% of the previous up
move which is quite positive. The stock has provided a
breakout from the downtrend line resistance with an
increase in volumes indicating fresh breakout i.e.
price-volume breakout. Historically, the stock has
reversed from 78.60% retracement levels; hence the
probability of a fresh up move and all life time highs is
quite high. With this breakout the stock seems to have
started wave III of wave 5 up, hence one can buy this
for the target of 1100 and place a stop loss at 600 i.e.
the previous months swing low. The MACD on the
monthly charts is also well in the buy mode which is
again quite positive for the bulls.
Note: Closing Prices as on 2nd November 2021.
Disclaimer: https://bit.ly/2RK2tzcCMP: ₹697 Target: ₹950
TVS Motors Stop Loss: ₹490 Upside: 36%
Investment Rationale:
The stock has taken a good support at the lower end of
the rising channel and with that it seems to have
completed its wave 4. The stock has started to form
higher tops and higher bottoms and with that wave 5
up seems to have started which will eventually take the
stock above its wave 3 highs of 795. The stock retraced
61.8% of its wave 3 and now it is likely to inch towards
950 which is its conservative target. The volumes have
increased with an increase in price hence this is a good
sign for the bulls. The MACD on the monthly charts is
well in the buy mode and it’s also trading above its zero
reference line which is also quite positive for the stock
going ahead.
Note: Closing Prices as on 2nd November 2021.
Disclaimer: https://bit.ly/2RK2tzcCMP: ₹522 Target: ₹750
State Bank of India Stop Loss: ₹399 Upside: 44%
Investment Rationale:
SBIN has finally provided a breakout above its long
term range and this time its sustaining well above
those levels. The breakout has come with an increase
in volumes and positive crossover in its momentum
indicators on the monthly charts. The stock
consolidated with a range of 350-375 on the upside to
145 on the downside. It a decade long consolidation
breakout and it’s not to be missed. The stock did retest
the breakout hence 399 is the stop loss going ahead
whereas 750 is the conservative target on the upside.
There is a risk: reward of more than 1:2, hence we
recommend buying the stock at these levels.
Note: Closing Prices as on 2nd November 2021.
Disclaimer: https://bit.ly/2RK2tzcYou can also read
