The Nifty 50 index threw up volatile trading on March 20. The overall sentiment in the market remained negative as the index closed below the previous consolidation low. Additionally, the index ended the session below the critical moving average. However, a further fall is anticipated below the recent swing low on the hourly chart, around 21,700.
On the higher end, the resistance is placed at 21,900-22,000.
The Bank Nifty encountered another round of volatility with the struggle between bulls and bears continuing unabated. Key support lies within the 46,000-45,800 zone, and maintaining these levels on a closing basis suggests a continued bullish stance.
Immediate resistance is seen at 47,000, coinciding with the 20-DMA (day moving average), and a decisive close above this level could reignite the upward trend, targeting levels around 48,000-48,500.
Here are three buy calls for the short term:
Container Corporation of India: Buy | LTP: Rs 840 | Stop-Loss: Rs 800 | Target: Rs 880/900 | Return: 7 percent
A bullish opportunity presents itself in this stock, marked by a Hammer candlestick formation at daily chart support. Coupled with oversold conditions indicated by RSI (relative strength index) below 30, it offers a favourable risk-to-reward ratio.
Consider initiating a long position within the range of Rs 830-840, one can set a stop-loss below the 200-day moving average at Rs 805, with a target at Rs 880.
Power Grid Corporation of India: Buy | LTP: Rs 265 | Stop-Loss: Rs 257 | Target: Rs 274/280 | Return: 6 percent
Despite recent market volatility, the stock has demonstrated signs of stability, hinting at a potential turnaround. It's approaching a crucial point, aiming to surpass its 50EMA (exponential moving average) at Rs 268, which could amplify its upward momentum.
Additionally, the RSI, in oversold territory, suggests a potential bounce from current levels. Key support is identified at Rs 257, serving as a cushion against downside risks, while upside targets are set at Rs 274 and Rs 280.
State Bank of India: Buy | LTP: Rs 736 | Stop-Loss: Rs 710 | Target: Rs 770/790 | Return: 7 percent
The stock has found support slightly above its 50EMA, signaling a potential reversal, particularly on lower time frames. Momentum, as indicated by the RSI, is poised for a bullish crossover, adding strength to the stock's upward potential.
Key support rests at Rs 710, while upside targets are set at Rs 770 and Rs 790.
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