Stocks for the week: September 3rd Week | 2024 | Vijay Thakkar

Introduction

Hello friends, I am Vijay Thakkar and welcome to our new video of Stocks for the Week. In today’s discussion, we’ll be analyzing the market, identifying which sectors to focus on, and I will share with you two notable stocks that have made significant breakouts on the monthly and weekly time frames. One of these stocks has broken out after 8 years, while the other has done so after 12 years. I’ll explain why I consider them to be pure gold by the end of this analysis.

Market Overview

Let’s begin by examining the market. On the screen, you can see the Nifty monthly chart. Last week, it was highlighted that Nifty formed a bearish engulfing candle, but this week there has been no confirmation of that pattern. In simpler terms, after a challenging week, the follow-up has been absent, and the week’s low has not been broken at 24750. Until this low is breached, we can maintain a neutral outlook.

Examining the daily time frame, we see that the swing low is also at 24750, so as long as it holds, we should not entertain negative thoughts about the market. However, my own positivity is quite limited.

When discussing Bank Nifty, its monthly chart appears reasonable compared to Nifty. Bank Nifty has shown more upward momentum, with last week's performance standing at 2.69%. It remains stuck in a range, with a crucial upside level at 5196. If it breaks above this level, there could be potential for strength; conversely, if Monday’s low of 5370 is breached, we may see a decline. In summary, both Nifty and Bank Nifty exhibit underlying market weakness, but no significant follow-up selling has occurred.

Sector Analysis

Focusing on sector performance, the worst performer last week was Oil and Gas, with ONGC being mentioned as a stock to watch closely. Although ONGC showed promise with a breakout, it has since fallen below its breakout level. The stock needs to regain strength, particularly after reaching a recent high of 345. A break above that level could indicate recovery.

This week, Foreign Institutional Investors (FIIs) were active buyers, with a significant purchase of Rs 7600 crore noted on September 12th, which paints a positive picture. Other key indicators include the dollar index trading around 100, crude oil at $ 55, and USD against INR at approximately 83.8, all of which are aligning favorably.

Featured Stocks

Now, let’s get to the main attraction—our two featured stocks.

First Stock: Advanced Enzyme

The first stock of interest is Advanced Enzyme, currently showcased on the monthly time frame chart. The key resistance was previously observed at 475-465. After a failed breakout in 2021, the stock, which had dropped to around 200, has now successfully broken out past its former resistance levels. A significant volume accompanies this breakout, indicating strong trading interest.

Upside potential for this stock is around 850. However, cautious traders should monitor the weekly low of 440. If this level is broken, it could signal a downturn.

Second Stock: TV Root

The second stock, which I regard as pure gold, is TV Root. This stock is currently achieving a breakout that hasn’t been seen since 2012, a significant achievement given the 12-year wait. The weekly candle pattern reflects strength, and I refer to it as the “king candle” due to its defining characteristics of tight price action.

Volume is steadily increasing, which supports the breakout's validity. My concern is that it has risen sharply from around 140 to 330 recently without consolidation. Ideal trading strategy would involve awaiting a consolidation near 290-300, which would facilitate a safer entry point with a manageable stop loss. The upside for this stock could reach approximately 580.

Conclusion

These are the two stocks that stand out for me this week. I encourage you to keep a close watch on them. If you want to learn more about stock selection strategies and risk management, consider joining my upcoming webinar on October 20-21. The link for registration will be in the description below.

If you found this information valuable, please like the video. I’m currently at a Tamil Nadu Investor Association event, and despite the late hour, I’m committed to providing you content without interruption. Your support means a lot, and if you haven’t subscribed yet, please do so. I look forward to connecting with you in the next video. Till then, bye-bye!

Keywords

• Nifty
• Bearish Engulfing
• Bank Nifty
• Oil and Gas Sector
• Advanced Enzyme
• TV Root
• Breakout
• Foreign Institutional Investors
• Market Review

FAQ

1. What is the current outlook on the Nifty market?
The Nifty market shows no negative signals as the week’s low at 24750 has not been broken. However, there is limited positivity in the outlook.

2. What sectors performed well last week?
The best-performing sectors included FMCG, Private Banking, Media, and IT, while Oil and Gas was the weakest sector.

3. Why is Advanced Enzyme considered a promising stock?
Advanced Enzyme has successfully broken out of resistance levels, backed by strong volume which indicates positive momentum and an upside potential to around 850.

4. What makes TV Root a noteworthy stock?
TV Root is achieving a significant breakout after 12 years. The price action and rising volume support this breakout, although a consolidation phase at lower levels would be ideal before entering a trade.