The Nifty has recently experienced a positive breakout from a sideways pattern, which has seen as a favourable development. This breakout comes just before the Reserve Bank of India (RBI) announces its rate decision on June 8.
Market participants are anticipating a dovish stance from the RBI governor, contributing to a positive sentiment in the market. Technically, support for the Nifty is positioned at 18,650, while resistance is expected around the range of 18,880-18,900.
The Bank Nifty remained sideways following a positive start. The undertone of the index is still bullish, maintaining the support of 44,000 in a spot where a decent amount of Put writing was seen and resistance is still intact at 44,500.
After the central bank policy, the Bank Nifty is expected to give a move on either side. Upon a decisive move 44,500, we might see strong directional upside moves.
Here are three buy calls for short term:
NTPC: Buy | LTP: Rs 177.35 | Stop-Loss: Rs 172 | Target: Rs 190 | Return: 7 percent
The stock has recently experienced a breakout from a wedge pattern, which is considered a bullish signal. Furthermore, it is sustaining above a critical moving average, reinforcing the positive trend.
The relative strength index (RSI) is also showing a bullish crossover, suggesting increasing buying momentum. In terms of technical levels, support for the stock is positioned at Rs 172, while resistance is expected around Rs 190.
Bharat Forge: Buy | LTP: Rs 808.45 | Stop-Loss: Rs 788 | Target: Rs 860 | Return: 6.4 percent
The stock has recently experienced a breakout from a double bottom pattern, which is considered a bullish signal. This breakout indicates a potential reversal of the previous downtrend. Additionally, the stock is sustaining above a critical near-term moving average, further supporting the positive outlook.
The RSI is showing a bullish crossover, indicating increasing buying momentum. In terms of technical levels, support for the stock is placed at Rs 788, while resistance is expected around Rs 860.
Power Grid Corporation of India: Buy | LTP: Rs 239 | Stop-Loss: Rs 234 | Target: Rs 250 | Return: 5 percent
The stock has recently experienced a breakout from a consolidation pattern, indicating a potential shift in its price trend. It is currently sustaining above a critical near-term moving average, which reinforces the positive outlook.
The RSI is showing a bullish crossover, suggesting increasing buying momentum in the stock. In terms of technical levels, the support is placed at Rs 234, while resistance is expected around Rs 250.
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