Elephants On The Move

JC Parets
February 4, 2021

There is a big difference between those who follow the market on a daily basis and those who take a quick glance at it once in a while. One category tracks moves for short term trades and the other looks out for long term investments.

What catches the attention of both these categories simultaneously though?

When the top two gainers of the day in Nifty50 go by the ticker names of SBIN and ITC.

This is not a frequent phenomenon and hence attracts more eyeballs upon occurrence.

Read on to know more.

SBI and ITC are like the elephants of the jungle - they move when they have to but stay under the radar for the most part. These are evergreen names that have the good fortune of being held in high standards in the eyes of the market, regardless of market conditions.

Ask around for long term investment tips, and all analysts big and small manage to throw these two names in the mix pretty often.

But why are we focusing on these names?

Has anything changed? Maybe.

Are we observing something new in the price action? Maybe.

 

We have been positive on Nifty Consumption despite the short-term weakness we were observing in the market. And while ITC has been on our radar for some time, we have been looking out for such a move. With the price and momentum picking up pace, we could see targets of 235 and 265 being achieved in the weeks and months ahead.

Short term traders can track a risk management level of 215, with targets near 235 & 250.

Long term investors can track a risk management level of 206, with targets of 250 & 265.

Click on chart to enlarge view.

Let's take a look at SBI. We discussed this in our Monthly Charts Strategy Session as well that if the price moves above 345, we'd be having a conversation soon about State Bank of India making new all-time highs. We may have that conversation sooner than later.

SBI is making a dash towards its all-time highs of 373.80. With momentum in a bullish regime and PSU Banks picking up pace, the price could make new all-time highs pretty soon.

For short term traders, the next target would be near 373 with a risk management level of 330.

Long term investors could look for a breakout above 373 with a target near 512 in the months ahead.

It takes a strong bull market for good moves to manifest into stocks such as ITC and SBI. While they may be part of several analysts' 'evergreen' long-term bets, it does help to track crucial levels in order to benefit immensely when the move is fierce.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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