By Kunal Shah, senior technical & derivative analyst at LKP Securities
Indian equities saw another day of gains with the headline index Nifty50 holding strong amidst volatile trading. The market trend remains positive as the index stayed above the moving average. The support is found at 19,700, while resistance is expected between 19,800 and 20,000 levels.
The Bank Nifty index experienced buying interest from lower levels, indicating that bulls are active in the market. The index has managed to hold the support zone between 45,300 and 45,200, which is a positive sign for the buyers. The immediate resistance on the upside is situated at 45,800.
If the index manages to sustain above this level, it is likely to open up further upside potential towards 46,000 and 46,300 levels. The overall undertone of the Bank Nifty index remains bullish, suggesting that the prevailing trend is in favour of the bulls.
Given this bullish sentiment, it is recommended to adopt a "buy on dip" approach. This means investors should consider buying when there is a temporary decline or pullback in the index's price, as the overall trend is expected to remain positive.
Here are three buy calls for next 2-3 weeks:
Canara Bank: Buy | LTP: Rs 338.45 | Stop-Loss: Rs 320 | Target: Rs 380-400 | Return: 18 percent
Canara Bank is exhibiting a bullish pattern known as a "rounding bottom" formation. This indicates a potential reversal of the previous downtrend and a shift towards a bullish trend. The stock's uptrend remains intact, with a pattern of higher highs and higher lows being observed on the price chart. This is a positive sign for buyers, as it shows sustained upward momentum.
The momentum indicator RSI (relative strength index) is trading above the 60 level, further confirming the stock's strong momentum and suggesting that the buying interest is robust.
The stock has a strong support level around Rs 320, where buyers are actively participating and holding the price from falling further. Given the bullish structure and strong momentum, the stock has a potential upside target of Rs 380 to Rs 400. This implies that the stock may move higher in the near future.
Sterlite Technologies: Buy | LTP: Rs 153 | Stop-Loss: Rs 146 | Targets: Rs 161-167 | Return: 9 percent
Sterlite Technologies has experienced a "falling trendline breakout" on the price chart, which is a bullish signal indicating a potential reversal of the previous downtrend. The breakout was accompanied by a sharp surge in volumes, suggesting increased buying interest and participation in the stock.
The momentum indicator RSI has shown a "positive crossover," further confirming the buy signal and indicating that the stock's momentum is turning positive.
The stock has a strong support level at its 20-day moving average (DMA), which is placed at Rs 148. This moving average acts as a dynamic support and has historically been relevant in supporting the stock's price during uptrends.
Given the falling trendline breakout, positive momentum, and strong support at the 20 DMA, the stock may have potential upside.
Bajaj Finserv: Buy | LTP: Rs 1,644 | Stop-Loss: Rs 1,600 | Target Rs 1,750 | Return: 6.4 percent
Bajaj Finserv witnessed a consolidation breakout on the daily chart and has maintained its position above a crucial moving average.
The RSI indicator shows a bullish crossover. The stock has support at Rs 1,600 and faces resistance at Rs 1,750 on the higher end.
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!
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.
