After a roller coaster ride during election week that ended on June 7, D-Street experienced a relatively quiet period, though it managed to close in the green, indicating a net positive gain of 0.75 percent for week ended June 14.
The Nifty index had been trading within an ascending channel, which is a bullish pattern that suggests rising prices. Last week, the index achieved a significant milestone by closing above this channel, a positive indicator for the market's future performance. Analysing the day-by-day sessions over the past week, the Nifty index formed multiple Doji candlestick patterns. The presence of several Doji patterns suggests that the market is undergoing a phase of consolidation, where prices stabilize as buyers and sellers reach a temporary equilibrium.
Regarding the Nifty index levels, 23,000 is considered a crucial support level. This means it is a key price point where substantial buying interest is expected to emerge, preventing the index from falling further. On the other hand, 23,500 is identified as a significant resistance level, where selling pressure is anticipated to be strong enough to cap any upward movement. If the Nifty index falls back inside the ascending channel, investors might take this as an opportunity to book profits up to the 23,000 level, leveraging the expected support at this point.
Conversely, if the Nifty index manages to close decisively above the 23,500-resistance level, it could signal further bullish momentum, potentially driving the index to reach 24,000 by the end of this week starting from June 18. This scenario indicates a positive market sentiment and suggests that breaking above 23,500 would likely trigger additional buying interest, pushing the index higher. Hence, traders are advised to buy quality stock on any significant dips. On the sectoral front, defensive like Pharma, FMCG and IT would be under radar.
For Nifty Bank index, support is anticipated around the 49,000 level, which suggests that buyers are expected to defend this zone to maintain the upward trend. On the resistance side, the index is likely to face challenges in the range of 50,250 to 51,000. This resistance zone represents a critical barrier that Bank Nifty needs to overcome for a continued upward trajectory. The interplay between these support and resistance levels will be crucial in determining the index's movement in the near term, especially as market participants digest the implications of the election results and their impact on the banking sector and broader economy.
Here are three buy calls for short term:
Titan Company | CMP: Rs 3,530
Recently, Titan has surpassed its previous swing high of Rs 3,460 and is now maintaining a stable position above it, around Rs 3,500 mark. It has also found support near the 200-day exponential moving average (DEMA) and the 21-day EMA, making it an attractive buying opportunity. On the indicator front, the daily Relative Strength Index (RSI) has broken through a bearish trendline that has persisted for 5-6 months, suggesting a bullish bias. Therefore, we recommend going long on Titan within Rs 3,500-3,540 range, with an upside target of Rs 3,675 and a stop-loss set at Rs 3,445.
Strategy: Buy
Target: Rs 3,675
Stop-Loss: Rs 3,445
Aether Industries | CMP: Rs 855
Following a correction of 9 percent downturn, Aether Industries has shifted its course away from the prior support mark of Rs 800. This support level notably coincides with the lower Bollinger band, implying a potential rebound, particularly given the weekly Relative Strength Index (RSI) has broken through a bearish trendline that has persisted for 12 months, suggesting a bullish bias.
Consequently, investors are advised to contemplate purchasing within the range of Rs 835-860, envisioning an upward trend with a target price of Rs 965. To manage risk effectively, it is recommended to implement a stop-loss order near Rs 795, centred on daily closing figures, to mitigate potential losses.
Strategy: Buy
Target: Rs 965
Stop-Loss: Rs 795
Jubilant Foodworks | CMP: Rs 530.65
Jubilant Foodworks has two key technical analysis signals: a bull divergence on the daily Moving Average Convergence Divergence (MACD) indicator and a violation of a bearish trend line that had been in place for 3-4 months. A bull divergence occurs when the stock price forms lower lows while the MACD indicator forms higher lows, indicating a potential reversal from a downtrend to an uptrend. The breach of the bearish trend line suggests a potential shift in the stock's direction from bearish to bullish.
Based on these signals, we advise investors / traders to "go long" in Jubilant Foodworks within the price range of Rs 522-532 per share. Additionally, an upside target of Rs 600 per share, indicating the potential profit opportunity. To manage risk, a stop-loss is advised to be placed near Rs 485 per share, on a daily closing basis.
Strategy: Buy
Target: Rs 600
Stop-Loss: Rs 485
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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