The Nifty shows a robust bullish trend marked by consistent higher tops and higher bottoms on monthly time frames. Recent hits of fresh life highs underscores the positive market sentiment for the medium to long term.
However, a corrective phase emerged in recent weeks, following a fresh life high at 22,124 on the weekly chart, where the Nifty formed a bearish engulfing candle till now, signalling profit-booking at higher levels. On the daily charts, the index has maintained a lower top, lower bottom formation, staying below the previous swing low, indicating a bearish sentiment in the short term.
Critical technical indicators, particularly the relative strength index (RSI), consistently show positive momentum, holding levels above 60 on weekly and monthly intervals. Yet, on the daily time frame, the RSI is approaching the 50 level, suggesting a lack of positive momentum in the short term.
Looking ahead, immediate resistance for the Nifty is identified at the 21,850 level, with an additional hurdle at 22,124, the life high level. On the downside, crucial support levels lie at 20,975 and 20,750.
Considering the overall chart structure, we anticipate short-term volatility. We recommend buying at support near the 21,100 – 21,000 zone for an upside potential ranging from 21,500 to 21,850 levels, implementing a strict stop-loss at 20,950 on a closing basis.
Here are three buy calls for short term
Amber Enterprises India: Buy | LTP: Rs 3,825 | Stop-Loss: 3,561 | Target: Rs 4,404 | Return: 15 percent
Amber is currently experiencing a notable surge, reaching its highest point in the past 52 weeks. This upward trend has been consistently bullish since its low in March 2023, demonstrating sustained positive momentum. The stock's impressive performance is characterized by a pattern of maintaining higher peaks and higher troughs, indicating a robust and continuous upward trajectory.
An interesting development in the RSI study is the recent change in polarity observed during the past week. This shift reinforces the continuation of the upward momentum in the stock, suggesting that the positive trend is likely to persist.
Furthermore, the concept of mean reversion is prominently visible in Amber's performance. Dips in the stock's value toward the short-term 12-week exponential moving average (EMA) consistently act as crucial support levels. This pattern contributes significantly to the overall bullish stance of the stock, highlighting its resilience and strength in the market.
Looking forward, there is an anticipation of further price ascent towards Rs 4,404 mark. It is recommended to set a stop-loss at Rs 3,561, strictly based on the closing basis.
Lupin: Buy | LTP: Rs 1,426 | Stop-Loss: Rs 1,330 | Target: Rs 1,597 | Return: 12 percent
Lupin is currently trading at its 52-week high, displaying a consistent pattern of forming higher tops and higher bottoms.
Notably, the stock has experienced a structural development by successfully trading above the breakout level established in 2021. Additionally, the stock has undergone a retest of the breakout level and has exhibited a pullback from the 12-week EMA, indicating a clear upward trajectory.
In the RSI study, a double bottom formation has emerged at the polarity level, serving to reinforce the overall bullish momentum of the stock.
The MACD (moving average convergence divergence) indicator has played a supportive role, registering a positive crossover in the recent week and current week it maintaining its position at positive territory. This affirms the stock's strong momentum and adds to the positive outlook.
Looking ahead, we anticipate further upward movement in prices, targeting Rs 1,597 level. It is recommended to set a stop-loss at Rs 1,330 based on closing values.
Rail Vikas Nigam: Buy | LTP: Rs 244 | Stop-Loss: Rs 225 | Target: Rs 286 | Return: 17 percent
RVNL has initiated a bullish surge, marked by a sequence of technical confirmations. The stock consistently reaches higher tops and bottoms, presenting a clear indication of sustained upward momentum. Moreover, the volumes have surged beyond the 10-week average volume.
This bullish sentiment receives additional validation from the ADX (average directional index) and DI (directional indicator) indicators. The ADX, registering at 53, signifies a firmly established trend, while the +DI persistently staying above 50 underscores the strength of the positive momentum.
Furthermore, the stock comfortably trades above key moving averages, including the 12-week and 26-week EMA. This alignment with the moving averages not only reinforces the positive momentum but also instills confidence in the stock's ongoing upward trajectory.
Looking ahead, we anticipate further upward movement in prices, targeting Rs 286 level. It is recommended to set a stop-loss at Rs 225 based on closing values.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
