The benchmark Nifty remained mostly rangebound as the market participants were confused about the direction. On the lower end, the Nifty found support at the 200-day DMA (days moving average) for the second time in the last three days, pointing towards the importance of the said support.
A decisive fall below the 200DMA (17,587) may trigger the panic button. In that case, the Nifty might decline towards the 17,400 level, where the next level of support lies.
The momentum indicator is indicating weakness with its bearish crossover on the daily timeframe. Therefore, the near-term trend looks negative, while the short term set up remains a buy on dips until the Nifty falls below 17,400 decisively.
The Bank Nifty index continued to trade in a narrow range one day before the weekly expiry. The options data suggest support at 42,000 and resistance at 42,500 where Put and Call writing respectively is visible. The undertone remains bullish as long as the index holds the support of 42,000 on the downside.
Here are three buy calls for short term:
Lemon Tree Hotels: Buy | LTP: Rs 83 | Stop-Loss: Rs 79 | Target: Rs 95 | Return: 14 percent
On the weekly chart, the stock has given a consolidation breakout, suggesting a rise in optimism. On the weekly chart, the index has sustained above the 50-day moving average (Rs 76.85).
The daily RSI (relative strength index 14) is in bullish crossover and rising, indicating positive momentum in the price. Over the next few days, the stock may remain strong with an upside potential of Rs 95. On the lower end, support is visible at Rs 79.
Coromandel International: Buy | LTP: Rs 947 | Stop-Loss: Rs 920 | Target: Rs 1,050 | Return: 11 percent
The stock has given a breakout from a downward channel and is showing signs of a fresh up move. The stock witnessed a breakout in the smaller time frame with a sharp surge in volumes.
The momentum indicator RSI is trading above the level of 60, which confirms the strong trend in the stock. The lower-end support is visible at Rs 920, which will act as a cushion for the bulls, and the upside potential target is Rs 1,050.
Voltas: Buy | LTP: Rs 851 | Stop-Loss: Rs 830 | Target: Rs 890 | Return: 4.6 percent
The stock has given a consolidation breakout on the daily chart, suggesting a rise in optimism. Besides, the stock has sustained above the critical moving average. The price rise is backed by a sharp increase in volume.
The daily RSI (14) is in bullish crossover and rising, indicating positive momentum in the price. Over the next few days, the stock may remain strong, with an upside potential of Rs 890. On the lower end, the support is visible at Rs 830.
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