The Nifty has made a double bottom formation in the downward-sloping channel formation. The market is showing signs of a bullish reversal, and 17,450–17,500 is an immediate target zone. On the downside, 17,290 will be the first support level, while 17,200 will be a strong support level.
Bank Nifty is outperforming but the trendline resistance at 41,200 is an immediate hurdle. The next hurdle beyond this will be 41,700. On the downside, this will be an immediate support level while 40,200 will be a key support level.
We have seen a short-covering move, and there is still scope for further short-covering, but the market needs fresh longs with the support of institutional investors. In the near term, RBI policy, macroeconomic data, and Q4 earnings are key events that will dictate the direction of the market from here.
Here are three buy calls for short term:
Apar Industries: Buy | LTP: Rs 2,600 | Stop-Loss: Rs 2,350 | Target: Rs 3,100 | Return: 19 percent
The counter is in a classical uptrend and made an all-time high closing on the daily chart. It has witnessed the breakout of a long consolidation of two months with strong volume. The structure of the counter still looks lucrative as a cluster of moving averages formed a base at around Rs 2,200 levels.
The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.
On the higher side, Rs 2,690 acts as susceptible levels; above this, we can expect a long move towards Rs 3,100+ in the shorter to longer timeframe, while on the lower side, Rs 2,350 serves as an important support during any correction.
Aptech: Buy | LTP: Rs 372 | Stop-Loss: Rs 340 | Target: Rs 424 | return: 14 percent
The counter has witnessed a breakout of an Inverse Head and Shoulders pattern formation on the daily chart, and the structure also looks lucrative as it trades above its all-important moving averages.
On the weekly chart, it is forming the right shoulder of an inverse H&S pattern formation. Rs 380–390 will act as a neckline and trendline resistance zone; above this, we can expect a run-up towards Rs 420 levels in the near term. On the downside, Rs 340 is an important support level.
Bajaj Auto: Buy | LTP: Rs 3,994 | Stop-Loss: Rs 3,860 | Target: Rs 4,234 | return: 6 percent
The counter is in classical bullish momentum and forming higher highs and higher lows formation on the daily chart. It also witnessed a breakout of a triangle formation with huge volume. MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised. The structure of the counter is impressive, as it is trading above all important moving averages.
On the upside, if Rs 4,000 is an immediate psychological hurdle, we can expect a move towards the Rs 4,200+ levels. On the downside, Rs 3,860 will act as a strong demand zone.
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