Buy the dip in Titagarh Rail as share price can touch Rs 2,000 in near term: Kunal Shah

The upside potential in Titagarh Rail, whose shares ended last week with a 17% return, remains strong, with momentum continuing to be very robust, according to Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

“Dips should be utilised to initiate fresh positions, with strong support at Rs 1,770. The stock is likely to touch the Rs 2,000 mark in the near term, with the uptrend intact on the daily chart.”

Edited excerpts from a chat:

Nifty saw a secular uptrend during the week. What do the charts tell you about the July series?

The Nifty index experienced a strong momentum rally over the past 3-4 days, followed by some profit booking at higher levels. The immediate resistance stands at 24,200, and a sustained move above this level will confirm the continuation of the ongoing uptrend. The index remains in a buy-on-dip mode with immediate support at the 23,900-23,800 zone, and a break below this level could lead to further selling pressure towards 23,650.

What would be your trading strategy for Nifty Bank which also made new records in the week?

The Bank Nifty index has been a significant outperformer in the last week, with a bullish undertone. The index remains in a buy-on-dip mode, with immediate support at 52,000, where the highest open interest is built up on the put side. The immediate resistance is placed at the 52,700-53,000 zone, and a decisive break above this will pave the way for further upside.

How do you read the upside seen in IT stocks during the week?

The Nifty IT index has finally broken the resistance of 35,200, resulting in a rally of nearly 1,000 points. The undertone remains bullish, and dips should be utilized to buy the index with immediate support at 35,850. If the index sustains above 36,000, it can head towards the 36,700-36,800 levels, which is the next resistance zone.

Titagarh and GRSE were among the top gainers in the week. More upside left in this momentum play?

GRSE has witnessed a sharp rally in the past month, more than doubling in value. Currently, the stock is trading in an overbought territory, and fresh positions are not recommended at these levels. Support is placed at the 1,950-1,900 zone, making dips toward this level an ideal opportunity to go long.

For Titagarh Rail, the upside potential remains strong, with momentum continuing to be very robust. Dips should be utilized to initiate fresh positions, with strong support at Rs 1,770. The scrip is likely to touch the 2,000 mark in the near term, with the uptrend intact on the daily chart.

Give us your top trading ideas for the week.
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RATIONALE:

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