Jatin Gedia Bullish on JSW Infra, Varroc Engineering; Cautions on PowerGrid

Market Insights: Jatin Gedia’s Stock Recommendations and Market Outlook

Jatin Gedia identifies key opportunities in JSW Infra and Varroc Engineering while expressing caution on PowerGrid amid market fluctuations.

Market Overview: Nifty and Bank Nifty Performance

The Nifty index recently pulled back towards the 22,800 level, encountering selling pressure that resulted in a negative closing. Immediate support is noted at 22,550, aligning with the previous day’s low, while the resistance level is positioned at 22,800. Divergent signals from both daily and hourly momentum indicators suggest that the Nifty may consolidate between 22,500 and 22,800 in the upcoming trading sessions. A breach below 22,550 could lead to a decline towards the 22,380 – 22,400 range, where support from the 200-week exponential moving average is located. Conversely, sustaining above 22,800 could trigger a short covering rally towards 23,100 – 23,150, coinciding with the upper end of the falling channel that has characterized the Nifty’s performance over the past eight weeks.

Bank Nifty Shows Relative Strength

In contrast, the Bank Nifty has demonstrated relative strength, closing up by 0.69%. However, it faced selling pressure around the 55,200 – 55,000 zone, where resistance from the 40-hour average and the upper Bollinger Band is present. On the downside, crucial support is identified at the 53,700 – 53,500 zone. Given the current price structure, the Bank Nifty is expected to consolidate between these levels in the near term.

Stock Recommendations: Buy and Sell Signals

Gedia has identified specific stocks for investors to consider. He recommends buying JSW Infra at ₹356, with a stop loss at ₹342 and a target price of ₹376. The stock has successfully retested a triangle breakout and is holding above its 20-day moving average, indicating buying interest. A bullish crossover in the daily momentum indicator further supports this buy signal.

Similarly, Gedia suggests buying Varroc Engineering at ₹855.25, with a stop loss at ₹834 and a target price of ₹915. The stock has been consolidating between ₹810 and ₹880 for the past eight weeks, forming a symmetrical triangle pattern on the daily charts. The anticipated breakout from this consolidation is expected to offer a favorable risk-reward ratio.

Caution on PowerGrid: Downtrend Signals

On the other hand, Gedia advises caution regarding PowerGrid Corporation, recommending a sell on its October futures at ₹260.25, with a stop loss at ₹266 and a target price of ₹252. The stock has been forming lower highs and lower lows, indicating a downtrend. Recent price action suggests a breakdown from a consolidation range of ₹263 – 275, signaling the resumption of a downward trajectory. A fresh negative crossover in the momentum indicator further supports this sell signal.

Key Highlights

• Nifty faces resistance at 22,800, with support at 22,550.
• Bank Nifty shows strength, closing up 0.69%.
• JSW Infra recommended as a buy with a target of ₹376.
• Varroc Engineering poised for a breakout, target set at ₹915.
• Caution advised on PowerGrid, with a sell recommendation.

Investor Note: Investors should consider Jatin Gedia’s recommendations carefully, particularly the bullish outlook on JSW Infra and Varroc Engineering, while remaining cautious with PowerGrid as it shows signs of a potential downtrend.