The Nifty on November 13 corrected more than 100 points from a high of 19,547, registered on the Muhurat trading session on November 12. For the last seven sessions, the Nifty has been hovering around its 50-day EMA (exponential moving average) of 19,447.
Bank Nifty, too, is near its 50-day EMA of 43,962. The breadth of the market is very strong as Midcap and Smallcap indices have been outperforming the benchmark index. The Nifty Smallcap index has been logging in fresh all-time highs for the last two trading sessions. The Nifty Midcap index is a couple of percentage away from its all-time high.
Indicators and oscillators like RSI (relative strength index) and MACD (moving average convergence divergence) have turned bullish on the daily chart of the Nifty with the near-term support for the index pegged at 19,300, which happens to be the upward sloping trendline adjoining the daily swing lows.
FII’s long to short ratio in index future stands at 0.22, which can be considered oversold and we can expect a short-covering rally from FIIs any time soon.
November has been the best month for the Nasdaq Composite index, if we were to consider the last 29 years of monthly performance historical data. So, we can expect the US markets to do well in the current month, which could auger well for the Indian market as well.
The Nifty rallied 10-32 percent within six months to the the day of the result announcements in case of the last five general elections. The market entered that auspicious six-month period in November. Every period had its own contextual nuances but broadly, for 25 years and five Lok Sabha elections, the markets have obliged with the pre-election rally.
Considering these evidences, we expect the market to perform well in the days ahead and dips should be utilised to go long as far as positional trades and investments are concerned. For short-term traders, we advise holding Nifty longs with 19,300 stop-loss.
Here are three buy calls for short term:
Five-Star Business Finance: Buy | LTP: Rs 797 | Stop-Loss: Rs 732 | Target: Rs 920 | Return: 15 percent
The stock price has been forming higher tops and higher bottoms on the daily chart. Primary trend of the stock is bullish as it is placed above all important moving averages.
Indicators and oscillators have been showing bullish trend for the stock. In the October series, the stock has seen long build up in the derivative segment, which confirms the uptrend.
Bank of Maharashtra: Buy | LTP: Rs 46.10 | Stop-Loss: Rs 43 | Targets: Rs 49-53 | Return: 15 percent
The stock has been consistently rising and making higher tops and higher bottoms over the last few weeks after touching a low of Rs 38.65 in October 2023. Last week, the stock has broken out of its recent trading range on the back of above average volumes. This augurs well for the uptrend to continue.
The stock is also currently trading above the 20-day and 50-day SMA (simple moving average). And momentum indicators like the 14-day RSI too are in rising mode and not overbought, suggesting scope for more upsides.
EIH: Buy | LTP: Rs 231.30 | Stop-Loss: Rs 210 | Target: Rs 270 | Return: 17 percent
On October 30, the stock broke out from the downward sloping trendline on the daily charts. On November 6, the stock price broke out from bullish “Flag” pattern on the daily charts, indicating continuation of an uptrend.
Stock price has formed strong base in the zone of Rs 205-210 and bounced back. Stock is placed above 50, 100 and 200 DEMA, indicating bullish trend on all time frames. Indicators and oscillators like MACD, DMI and RSI have turned bullish on the daily charts.
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.
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