The Nifty index closed in the red, sinking below the lows of the last five days below key support zone of 19,500, which can be the cause for a short-term negativity. It would be interesting to see how the index behaves this week. It will decide the trend for the next leg.
The 19,350-19,450 levels are expected to act as a strong support zone and, if it gets broken, the Nifty will start moving towards 19,000.
The support on the downside is at 19,400, 19,300 and 19,250, whereas the immediate hurdles are at 19,500, 19,600 and 19,800. Highest open interest is at 19,600 on the Call and 19,400 on the Put side which indicates sideways momentum till the time range is broken.
On the indicator front, the momentum indicator relative strength index RSI (14) is showing a reading of 47 and the Nifty is trading above its 200-day EMA at 18,331 which indicates strength.
Here are three buy calls for short term:
3M India: Buy | LTP: Rs 29,469 | Stop-Loss: Rs 28,200 | Target: Rs 32,546 | Return: 10 percent
The stock has seen breaking out of a resistance zone on the weekly timeframe after more than two years with a big bullish candlestick pattern, adding to it the stock is trading and sustaining above all its important EMAs which can be used as a confluence towards the bullish view.
On the indicator front, the Ichimoku Cloud is also suggesting a bullish move as the price is trading above the conversion line, base line and cloud.
Momentum oscillator RSI (14) is at around 62 on the daily time frame indicating strength by sustaining above 50.
Observation of the above factors indicates that a bullish move in 3M India is possible for target upto Rs 32,546. One can initiate a buy trade in between the range of Rs 29,460-29,469, with a stop-loss of Rs 28,200 on daily closing basis.
FIEM Industries: Buy | LTP: Rs 1,988.7 | Stop-Loss: Rs 1,930 | Target: Rs 2,134 | Return: 7 percent
FIEM Industries has seen breaking out of a Cup and Handle pattern with above average volumes and a big bullish candlestick on the daily timeframe. It is also trading above important EMAs of 20/50/100/200 which indicates strength.
On the indicator front, the supertrend indicator is indicating a bullish continuation, momentum oscillator RSI (14) is at around 67 on the daily time frame indicating strength by sustaining above 50. And the Ichimoku Cloud is also suggesting a bullish move as the price is trading above the conversion line, base line and cloud on the daily timeframe.
Observation of the above factors indicates that a bullish move in FIEM is possible for target upto Rs 2,134. One can initiate a buy trade in the range of Rs 1,980-1,988 with stop-loss of Rs 1,930 on daily closing basis.
Shankara Building Products: Buy | LTP: Rs 802.5 | Stop-Loss: Rs 750 | Target: Rs 900 | Return: 12 percent
Shankara Building Products has seen breakout of a resistance trendline on the weekly timeframe with a bullish candlestick pattern and above average volume after sixteen months which indicates strength. The stock is also trading above all its important EMAs on the daily timeframe which acts as a confluence.
The supertrend indicator is also indicating a bullish continuation which supports the bullish view. Momentum oscillator RSI (14) is at around 71 on the daily time frame indicating strength by sustaining above 50. And the Ichimoku Cloud is also suggesting a bullish move as the price is trading above the conversion line, base line and cloud.
Observation of the above factors indicates that a bullish move in Shankara is possible for target up to Rs 900. One can initiate a buy trade in between the range of Rs 796-802 with stop-loss of Rs 750 on daily closing basis.
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