Best Share to Buy for Long-term - Trade Funda (2024)

Market Volatility is Increasing, We Have to Act Carefully This Time

I am starting today’s blog by greeting everyone. Today’s topic is ‘Best Share to Buy for Long-term’. Excluding the beginning and end of the week, the market was dominated by bears for the remaining three days. The market fell from a high of 19800 to 19300 points on the first and second days of the week on Wednesday and Thursday. On Friday, we noticed the market rising again from the support level. Now most of us have only one question that this rise in the market is temporary? Is the market now occupied by bears? We will find answers to all questions today in today’s blog. Along with this, there will be discussions about bank nifty, Dow jones and stocks. So let’s start today’s discussion.

Analysis of Nifty-50

#Nifty Prediction

• Nifty’s Current Value as of 04-08-2023 is 19509
• The 10-day moving average is 19634
• The 20-day moving average is 19625
• The 50-day moving average is 19139
• The 200-day moving average is 18229
• The relative strength index value in the daily chart is 51.
• Weekly open – 19672; high – 19789; low – 19299; close – 19509.
• The relative strength index value in the weekly chart is 67
• Weekly R.S.I. is still greater than daily R.S.I., which indicates the bullishness of the market in the medium term.
• Almost 500 points down from the high indicates bearishness in the market for the short term.
• The market has started to move in a downsloping channel
  (which is drawn in the picture of Nifty).
• Due to last Friday’s movement, Nifty may touch the 19600 level at the beginning of the week.
• If the market falls from this level, then the 19250–19200–19100 levels are going to be very important because the market is likely to get support from these levels.
• Let the market break all these levels first, and then you can think about the bad side of the market. Now there is no need to panic.
• The India Vix’s value this week was 10.57%. This indicates market moves from here by 10.57% either up or down in a year.

Analysis of Bank Nifty

Bank Nifty Prediction

• The current market value as of 04-08-2023 is 44859
• The 10-day moving average is 45358
• The 20-day moving average is 45355
• The 50-day moving average is 44659
• The 200-day moving average is 42614
• R.S.I. in the daily chart is 46
• Weekly Open- 45512; Weekly high – 45777; low – 44284; Close – 44859.
• The weekly R.S.I. is 60.
• The weekly R.S.I. is still greater than the daily R.S.I. showing the market’s bullishness.
• A long black candle is visible in the weekly chart of the Bank Nifty.
• It indicates bearishness in the market for the short term.
• But Friday’s movement may take it up to the 45500 level.
• On the other hand, if the intensity of fall is more then bank nifty can come up to 43450 level.

Analysis of Dow Jones

Dow Jones Prediction

• The current market value as of 05-08-2023 is 35066
• The 10-day moving average is 35386
• The 20-day moving average is 35018
• The 50-day moving average is 34267
• The 200-day moving average is 33511
• Relative strength index value in the daily chart is 54
• Weekly open –35479, High – 35676, Low – 35054, Close – 35066
• The weekly value of R.S.I. is 59.
• Shaven bottom white candle is visible in both the weekly and daily chart which suggests more fall may come in the short term.
• If more fall occurs then 34400 may act as a support zone for Dow jones.

If the market falls more, we will try to avoid buying the stock. If you absolutely must buy it, then buy a small quantity. In the future, more can be bought at the right place. The stocks to watch for now are:

• Castrol India Ltd.
• LIC Housing Finance Ltd.
• KFin Technologies Ltd.
• Lupin Ltd.
• Amgen Inc.

Technical Analysis of Castrol India Ltd.

• The current Market Price as of 04-08-2023 is 151
• 10-day moving average – 143
• 20-day moving average – 137
• 50-day moving average – 126
• 200-day moving average – 121
• The relative Strength Index value in the daily chart is 74
• Weekly open 149, High –153, Low – 139, Close – 151
• The relative Strength Index value in the weekly chart is 79
• Short-term, Medium-term and long-term trends are bullish.
• A white body with a long shadow candle is visible in the weekly chart; the close is almost equal to the high, suggesting that there is a higher probability of moving up from the current position.
• Buy and hold it for the long term.
• The medium-term target price is 200.
• The long-term target price is 270.
• The next medium to long-term target for this stock is 221.
• You must put your stop loss below the 140 level.
• If you have an interest in company fundamentals then click on this link.

Technical Analysis of LIC Housing Finance Ltd.

• The current Market Price as of 04-08-2023 is 427
• 10-day moving average – 406
• 20-day moving average – 397
• 50-day moving average – 389
• 200-day moving average – 379
• The relative Strength Index (R.S.I.) value in the daily chart is 65
• Weekly open 413 High – 433, Low – 390, Close – 426.
• The relative Strength Index value in the weekly chart is 66
• The higher R.S.I. suggests a strong momentum both in the short to medium term.
• A long-tailed big white candle with almost the same high and closing price suggests that the price may move further from here.
• The short to Medium term target price is 540
• The long-term target price is almost 800.
• Below 365 level will act as a stop-loss.
• For company fundamentals, follow this link.

Technical Analysis of KFin Technologies Ltd.

• The current Market Price as of 04-08-2023 is 389
• 10-day moving average – 383
• 20-day moving average – 379
• 50-day moving average – 360
• 200-day moving average – N/A
• The relative Strength Index value in the daily chart is 61
• Weekly open 392, High – 396, Low – 369, Close – 389
• The relative Strength Index (RSI) value in the weekly chart is 62.
• Both daily and weekly R.S.I. suggest strong momentum.
• A long-tailed black candle is visible and suggests the upward movement of price in the future.
• Short to Medium term target price is 436.
• Stop-loss should be maintained below 370 level.
• Follow this link for the company’s fundamentals.

Technical Analysis of Lupin Ltd.

• The current Market Price as of 04-08-2023 is 1064
• 10-day moving average – 983
• 20-day moving average – 956
• 50-day moving average – 888
• 200-day moving average – 759
• The Daily R.S.I. – 88
• Weekly open 972, High – 1078, Low – 972, Close – 1064.
• The weekly R.S.I. chart is 87.
• A bottom shaved (open = low) big white candle in the weekly chart suggests the strong momentum of the price towards the up-side in the near future.
• The short-term target price is 1260.
• The long-term target price is 2000.
• Stop-loss should be applied below 900 level.

Technical Analysis of Amgen Inc.

• The current market value as of 05-08-2023 is 243
• The 10-day moving average is 234
• The 20-day moving average is 231
• The 50-day moving average is 226
• The 200-day moving average is 246
• The relative strength index value in the daily chart is 70
• Weekly open –236, High – 246, Low – 228, Close – 243
• The weekly value of R.S.I. is 55.
• After a massive fall, the price is now trying to move upside making the base at the 212 level.
• A gap-up big white candle with high volume suggests the short-term to medium-termbullishness of this stock.
• A big white candle with a long shadow in a weekly chart supports the bullishness of the stock movement.
• Short to Long term target prices are 256-279-296
• Stop-loss should be maintained below the 227 level.
• You may also like the company’s fundamentals.

Disclaimer: This is a completely educational post. My personal opinion is published in this blog. Trading or investing in the stock market is always subject to risk. I am not a S.E.B.I. (Securities Exchange Board of India) registered analyst. Therefore, you should follow the advice of your financial advisor to invest in the stock market. Do your own research as well. I will feel blessed if my writing helps you earn a profit. Share the blog with lots of acquaintances and friends. Your constructive comments will strengthen my writing. That’s it for today. Jai Hind.