On June 21, the Nifty index experienced a largely flat and sideways movement. Despite this, the overall trend remains positive as the index managed to stay above the 18,800 mark, which is considered as an immediate support.
In the short term, a crucial support level is observed at 18,700, where a substantial number of Put writers have shown their presence. This suggests that there is a significant amount of buying interest and support at that level.
On the higher end, a resistance level is noted at 19,000, where Call writers are waiting to defend the price level. This indicates that there may be selling pressure and a potential hurdle for the index to surpass. A rise above 19,000 may induce further rally in the market.
The Bank Nifty index sees a continued battle between the bulls and the bears. It has a support level at 43,500, which is indicated by the presence of maximum Put writing.
On the other hand, there is resistance at 44,000 strike, where the highest open interest has seen on the Call side. A break on either side of this range is expected to result in trending moves. Within the range, it is advisable to adopt a buy-on-dips approach.
Here are two buy calls and one sell recommendation for short term:
Indiabulls Housing Finance: Buy | LTP: Rs 117 | Stop-Loss: Rs 113 | Target: Rs 127 | Return: 8.5 percent
The stock has recently experienced a consolidation breakout on the daily chart, indicating a potential upward movement in its price. Additionally, it has managed to sustain above a critical moving average, further reinforcing the positive sentiment.
The relative strength index (RSI) is showing a bullish crossover, suggesting increasing buying pressure in the stock. On the higher end, there is a possibility for the stock to move towards Rs 127 level.
On the lower end, there is a support level placed at Rs 113, indicating a potential floor for the stock's price. Overall, these indicators point towards a favourable outlook for the stock in the near term.
JSW Steel: Sell | LTP: Rs 779 | Stop-Loss: Rs 770 | Target: Rs 730 | Return: 6 percent
The stock has recently experienced a decline in its price after forming a Double Top pattern on the daily chart, suggesting a potential trend reversal. Moreover, on the lower timeframe, the stock has fallen below a critical moving average, indicating a shift in the short-term momentum towards the downside.
Additionally, the RSI is showing a bearish crossover on the daily chart, further supporting the notion of increasing selling pressure. On the lower end it may fall down towards Rs 730. The stop-loss is visible at Rs 770.
GNFC: Buy | LTP: Rs 600 | Stop-Loss: Rs 580 | Target: Rs 635-650 | Return: 8 percent
Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) stock recently experienced a breakout on the daily chart, accompanied by a rise in trading volumes. Fresh long positions were built up in the F&O segment, indicating positive market sentiment.
The momentum indicator RSI has shown a positive crossover, suggesting bullish momentum. The stock has support at Rs 580, and the potential upside targets are Rs 635 and Rs 650.
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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