By Rupak De, senior technical analyst at LKP Securities
Nifty has witnessed a robust upward movement, propelled by a strong global equity market sentiment, particularly following a gap-up opening. On the daily charts, the index has shown significant upward momentum after a consolidation phase, indicating an increase in optimism.
The overall trend appears positive, with the index consistently maintaining levels above the critical moving average.
Looking ahead, the bullish sentiment is likely to persist as long as the index remains above 19,500. On the upper side, the resistance is anticipated in the range of 19,700 to 19,850.
Bank Nifty exhibited a predominantly sideways movement subsequent to a gap-up commencement. Nevertheless, the index has consistently maintained its position above the crucial moving average on the daily chart, indicating a positive trend.
The key support is situated at 44,000, and the sentiment is expected to stay optimistic as long as it remains above this level. On the upside, there is a potential movement towards 44,750.
Here are three buy calls for short term:
TCS: Buy | LTP: Rs 3,404 | Stop-Loss: Rs 3,330 | Target: Rs 3,550 | Return: 4 percent
Tata Consultancy Services (TCS) has experienced a breakout from consolidation after forming a base on the daily chart. The sentiment appears positive as the stock has risen above the critical short-term moving average.
The RSI (relative strength index) shows a bullish crossover. On the downside, the support is established at Rs 3,330, while on the upside, there is potential for the stock to reach levels around Rs 3,550.
Reliance Industries: Buy | LTP: Rs 2,356 | Stop-Loss: Rs 2,320 | Target: Rs 2,410 | Return: 2.3 percent
Reliance Industries has experienced a breakout from a falling channel on the daily chart, indicating an increase in optimism. Additionally, the stock has surpassed the critical moving average.
The momentum indicator shows a bullish crossover, following a breakout from consolidation. In the short term, there is a potential upward movement towards Rs 2,410, with support situated at Rs 2,320.
Asian Paints: Buy | LTP: Rs 3,116 | Stop-Loss: Rs 3,048 | Target: Rs 3,330 | Return: 7 percent
The stock is presently trading with a Cup & Handle pattern breakout on the daily chart, and this breakout is accompanied by increasing trading volume, indicating positive momentum in the stock.
The RSI (relative strength index) indicator suggests a buying opportunity at current levels. Additionally, the stock has been holding above the 21-day simple moving average (DMA) on the daily chart for the last 4 days, indicating strength.
As per the current pattern, there is an expectation of reaching levels around Rs 3,330 on the upside. To manage risk, it's advisable to maintain a stop-loss at Rs 3,048 on a closing basis. For potential investors, a good entry point is at Rs 3,110, and consider buying on dips around Rs 3,090.
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.
Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
