The Nifty 50 has formed a Piercing Line pattern on the daily chart on January 31 after forming a Dark Cloud Cover in the preceding session. This consecutive complete reversal pattern indicates a highly volatile market sentiment. The trend may continue to be volatile on Thursday with the interim budget being tabled on February 1.
The support on the lower end is seen at 21,500, while a decisive move above 21,750 might trigger a rally towards 22,100 and beyond on the Nifty 50.
The Bank Nifty bulls made a robust comeback a day before the budget, surpassing the immediate hurdle at 45,500. The index now faces the next resistance at 46,500, and a decisive break above this level could potentially reverse the entire trend for the index.
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On the downside, the immediate lower-end support is at 45,700, and breaching this level may signal a resurgence of bearish control in the market.
Here are three buy calls for short term:
DCW: Buy | LTP: Rs 69 | Stop-Loss: Rs 60 | Target: Rs 80 & Rs 85 | Return: 23 percent
The stock has recently experienced a robust breakout from a symmetrical triangle pattern, accompanied by a notable surge in volumes, signaling a bullish trend.
The momentum indicator, RSI (relative strength index), reinforces this positive sentiment with a confirmed positive crossover. Trading above the 20-day moving average (20DMA), the stock finds support at Rs 60, utilizing the 20DMA as a cushion during dips. The potential upside targets are at Rs 80/85.
Trident: Buy | LTP: Rs 47.6 | Stop-Loss: Rs 43 | Targets: Rs 53 & Rs 60 | Return: 26 percent
Exhibiting a strong bullish momentum, the stock recently broke out from a falling trendline, accompanied by a significant surge in volumes. The daily chart showcases a well-established uptrend, marked by consistent higher highs and higher lows.
Bulls can find support at Rs 43, providing a cushion for potential downturns. With the current upward trajectory, the stock presents upside targets at Rs 53-60.
Exide Industries: Buy | LTP: Rs 335 | Stop-Loss: Rs 323 | Targets: Rs 345 & Rs 355 | Return: 6 percent
The stock exhibits a clear uptrend, rebounding from its 20-day EMA (exponential moving average). The relative strength index (RSI) at 71 indicates a bullish crossover, while the positive RSI further supports a positive outlook.
Considering these factors, initiating a long position in the stock within the range of Rs 334-329, with a stop-loss at Rs 323, seems prudent. The target prices for this trade are set at Rs 345 and Rs 355.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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