Nifty50 has given a falling channel breakout on the daily timeframe, suggesting a bullish reversal of the price trend. The trend looks positive now for the near term, with the 14-day moving average (DMA) sitting below price. The momentum indicator relative strength index (RSI) is in support of the price trend, with a current reading above 50.
Over the near term, the index may move up towards 18,350–18,400. On the lower end, the support is placed at 17,950.
Bank Nifty index witnessed buying from the lower level and the bulls managed to hold the support of 41,400. The index on the upside immediately faces a hurdle at 42,000 where the highest open interest is built up on the Call side.
The index remains in a buy-on-dip mode and once surpasses the level of 42,000 will witness a sharp short covering towards 43,000-43,500 levels.
Here are three buy calls for short term:
NAVA: Buy | LTP: Rs 253 | Stop-Loss: Rs 240 | Target: Rs 270-280 | Return: 5 percent
The stock after a brief consolidation is on the verge of a breakout from a falling trend line. The momentum indicator RSI has given a positive crossover on the daily chart and is trading above the level of 60 which confirms the buy signal.
The stock is trading above its short-term moving average of 20-day which is placed at Rs 240.
Kotak Mahindra Bank: Buy | LTP: Rs 1,785 | Stop-Loss: Rs 1,740 | Target: Rs 1,830-1,870 | Return: 5 percent
The stock has given a consolidation breakout on the daily chart with a rise in volumes. The stock momentum oscillators have reversed from the oversold territory which confirms the strength in the stock.
The lower-end support is visible at Rs 1,750 which will act as a cushion for the bulls and the potential upside targets are Rs 1,825-1,870.
Bajaj Finserv: Buy | LTP: Rs 1,421 | Stop-Loss: Rs 1,380 | Target: Rs 1,490-1,570 | Return: 10 percent
The stock has given a consolidation breakout on the daily chart, suggesting a rise in optimism. Furthermore, the stock has remained above its short-term moving average.
The momentum oscillator is in bullish crossover. Over the short term, the stock is likely to remain positive and has the potential to move towards Rs 1,490-1,570. On the lower end, the support is at Rs 1,380.
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