The Indian stock market fell steeply at open on Monday amid surging Omicron cases and a hawkish hint in Fed meeting minutes. However, the overall trend still remains bullish.
The Nifty 50 index is expected to head north after breaking out of a downward-sloping channel between 18,000 and 18,200. If the Nifty 50 tops our 18,200 target level, then the bulls will be aiming to make a fresh all-time high. On the downside, the 50- and 100-day moving average cluster at 17,500 should slow any retreat. 17,300 and 17,150 mark next support levels, which can be a good time to accumulate some stocks.
Multibagger Stocks 2022: Radico Khaitan
The Radico Khaitan has seen a strong move in October. It consolidated for the next two weeks, but it finally broke out last week of December. The back end of the stock seems to have been completed, making the stock ready for some more upward movement.
The relative strength index (RSI) (14,9) is currently at 67, above the moving average. The moving average convergence divergence (MACD) (9,24,9) is also sustaining in a bullish mode. In relative terms, it consistently outperformed the major indices between mid-August and mid-November.
The stock may advance up to 220 points from the high of Rs 1,214. This will give it a target price of Rs 1,434.
Multibagger Stocks 2022: HDFC Bank
It has shown a strong bounce back from its December low. It’s managed to break out above the downward sloping trend line. It has also broken above all major 20, 50, and 100 day EMAs. The momentum is heavy weightage from both the Nifty and Bank Nifty indices; it’s currently outperforming both indices. The RSI (14) is currently reading around 65 and sustaining above the moving average. It’s successfully sustained above the major resistance level of 45; at the same time, MACD (9,24,9) is also in Bullish mode.
Multibagger Stocks 2022: Alembic Pharma
Post a sharp correction in July, the stock consolidated for a few weeks around its 200-day moving average. Today, prices broke out above that consolidation, so we’re expecting some upward momentum for the next week or two. We think this stock could be worth watching and considering buying over the next few weeks.