Amid the rush for booking profits, the Nifty50 index corrected a mere half a percent, settling the week around the 19,650 zone on July 28. The phenomenon has been very much in line with the market expectation after the recent stellar rally to an uncharted territory.
Technically speaking, amid the ongoing breather in the market, the chart structure construes optimism, and it is likely to continue the cheerful run in the comparable period.
As far as levels are concerned, till the index firmly withholds the pivotal support of 19,500, there is no sign of caution in the market. While on the higher end, 19,800-20,000 holds stiff resistance and a decisive move beyond which could trigger the next leg of rally.
We remain sanguine in the market but would advise to avoid undue risk as the market lacks buying conviction in the current scenario.
Here are two buy calls for short term:
Bharat Electronics: Buy | LTP: Rs 130.15 | Stop-Loss: Rs 124 | Target: Rs 137 | Return: 5 percent
Bharat Electronics (BEL) has seen strong buying traction in the last trading session on July 28, which led to a consolidation breakout on the broader time frame, signifying positive development in the counter.
On a technical aspect, the 14-day RSI (relative strength index) has witnessed a positive crossover, adding to the bullish undertone. The stock looks well verse to continue its upwards journey in the comparable period.
Hence, we recommend buying BEL in the range of Rs 128-130, with a stop-loss of Rs 124 and target of Rs 137.
Torrent Power: Buy | LTP: Rs 671.80 | Stop-Loss: Rs 620 | Targets: Rs 715-730 | Return: 9 percent
Torrent Power witnessed a strong consolidation breakout in the last trading session (July 28) on the back of robust volumes. Also, with the recent move the stock has retraced over 50 percent of the fall on the broader term perspective, indicating a strong rebound.
The primary technical indicators align with the trend suggesting a continuation of the movement in a comparable period. Hence, we recommend buying the stock in the range of Rs 660-665, with a stop-loss: Rs 620 and target of Rs 715-730.
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