For the past few days, the Nifty has been consolidating above the critical moving average, indicating a positive trend in the short term. A decisive breakout on either side is likely to confirm the future directional trend. On the lower end, the support is seen at 21,700.
A drop below 21,700 might trigger panic in the market. Conversely, a decisive move above 22,125 could spark a smart rally in the market.
The Bank Nifty index is sees an intense battle between bulls and bears, and a decisive move is anticipated soon. The lower-end support is situated in the 45,600-45,500 zone, and a conclusive break below this on a closing basis is expected to trigger a sharp correction.
Conversely, a break above the higher-end resistance at 46,200 could lead to substantial short-covering moves, propelling the index towards the 46,500 level.
Here are three buy calls for short term:
Intellect Design Arena: Buy | LTP: Rs 1,005.65 | Stop-Loss: Rs 949 | Target: Rs 1,100 | Return: 9 percent
The stock has experienced a notable upward movement after a consolidation breakout on the daily chart, indicating an increase in optimism. Additionally, the stock has maintained its position above the critical moving average.
The relative strength index (RSI) shows a bullish crossover on the daily timeframe. In the short term, there is a potential for the stock to move towards Rs 1,100. Support is established at Rs 950.
Samvardhana Motherson International: Buy | LTP: Rs 122.30 | Stop-Loss: Rs 116 | Target: Rs 133 | Return: 9 percent
Motherson has displayed bullish signals, notably with a rounding bottom breakout and a closing at its peak. Technical indicators support this momentum, with RSI showing a bullish crossover and TSI (true strength index) remaining positive.
The stock's support level at Rs 116 enhances the bullish outlook, with targets set at Rs 128/133. Traders may consider initiating long positions, anticipating further upward movement in Motherson's stock price.
State Bank of India: Buy | LTP: Rs 675 | Stop-Loss: Rs 635 | Target: Rs 750 | Return: 11 percent
The daily chart indicates a parallel channel breakout with notable volume, signaling a potential upward trend. Additionally, the stock closed with a bullish Morubozu candlestick pattern.
Technical indicators support this outlook, with RSI showing a bullish crossover and TSI remaining positive. A long position can be considered within the range of Rs 672, with a stop-loss set at Rs 635, targeting Rs 750. Traders may capitalize on this bullish momentum for potential gains.
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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