The Nifty 50 index is up nearly 400 points, after the 550-point rally it witnessed on Friday. The index has now risen over 1,000 points from last Thursday’s low of 23,263.
Sacchitanand Uttekar of Tradebulls believes that two Nifty stocks on the charts are “buy” recommendations based on their respective current setups.
Here is what he said:
TCS is currently showing an encouraging upgrade in its relative strength as it approaches a key accumulation pattern breakout zone, outperforming broader market trends. The stock’s ability to consistently close above its 200-day exponential moving average (200-DEMA) and post a strong close above its 20-week exponential moving average (20-WEMA) sets a solid foundation for a potential bullish rally.
On the daily chart, the formation of a Cup & Handle pattern signals the possibility of a significant upward movement, targeting ₹4,600 in the initial phase. This outlook is supported by the stock’s recent price action, which saw a bullish engulfing candlestick pattern emerge at ₹3,900, reinforcing its retracement support base. This move has built positive momentum, driving the stock closer to its immediate resistance at ₹4,300.
A successful breakout above ₹4,300 could unlock further upside potential, with subsequent targets projected at ₹4,740 and ₹5,280. Investors are advised to consider initiating positions in the stock with a stop loss at ₹4,020 on a weekly closing basis. For traders chasing momentum, maintaining a stop below ₹4,180 on a closing basis is recommended.
Reassessing the position around ₹4,600 will be key, ensuring alignment with market dynamics while capitalizing on the ongoing bullish trend.
Among the key performers within the cement space, Ultratech Cement has exhibited a commendable recovery, erasing a 10-day losing streak in just 1.5 days of robust bullish action. This sharp rebound signals the beginning of a fresh Impulse Wave. Notably, the price action around its 200-day exponential moving average (200-DEMA) support at ₹10,710 was pivotal. The current impulse movement has validated the Double Bottom pattern on the daily chart, marking a significant trend reversal.
Additionally, the Double Bottom formation has confirmed the base of an existing Broadening Pattern, with the upper boundary situated near ₹12,400. This alignment presents a strong opportunity for both investors and traders.
Market participants are encouraged to accumulate Ultratech Cement and leverage the momentum, maintaining a stop loss at ₹11,010. The stock offers an immediate upside potential toward ₹12,400, with additional gains likely if the broad market and sectoral trends remain supportive.
Shares of TCS are currently trading 1% higher at ₹4,289, while those of UltraTech Cement are trading with gains of 2.3% at ₹11,633.
