The Nifty50 concluded the Muhurat trading session higher at 19,526 on November 12, as the index staged a range breakout and closed above the 50-EMA (exponential moving average). The 21-day EMA (19,386) displays a mild rising slope, which augurs well for bullish momentum if the Index manages to sustain above the same.
The critical resistance was seen at 50-day EMA and 19,500-level, and with this being a Muhurat session, we would want to see confirmation of the Index sustaining above the same. The index underwent a deeper corrective move last month and currently bounced from the 200-EMA to 19,500-level but stronger bullish momentum can be only witnessed above 19,750-19,850-zone.
Bank Nifty ended the session mildly positive at 43,997 as it too attempted a narrow range breakout. The index has closed above the 21-day EMA (43,623) and in Sunday's session, it managed a close above 50 EMA (43,965) which suggests near-term bullishness.
Going forward, sustaining above 43,500-level can open counts for 44,300-44,500 on the upside. The lack of real body formation suggests a weaker upmove and only any significant range expansion above 43,500 will guide about the strength of the recovery rally.
Here are three buy calls for short term:
Radico Khaitan: Buy | LTP: Rs 1,387 | Stop-Loss: Rs 1,315 | Target: Rs 1,550 | Return: 12 percent
The stock has exhibited a robust bullish momentum from mid-2020 until the end of 2022, experiencing a significant rise from Rs 300 to around Rs 1,200 levels. Following this, the stock entered a period of time and price consolidation.
Currently, it shows indications of breaking out of this consolidation phase and appears poised to challenge its previous all-time highs. Given the stock's strength, there's a likelihood that it will move towards Rs 1,500-1,600 zone, with a reasonable stop-loss set at Rs 1,315.
Transformers and Rectifiers India: Buy | LTP: Rs 178 | Stop-Loss: Rs 169 | Target: Rs 200 | Return: 12 percent
The stock has been on a robust upward trajectory since the beginning of the year, witnessing a climb from Rs 80 to around Rs 178. After a period of consolidation in the last three months, the stock seems ready to break out of this consolidation phase.
With the recent establishment of a new all-time high, there are expectations of strong bullish momentum continuing in the coming weeks.
JK Cement: Buy | LTP: Rs 3,495.5 | Stop-Loss: Rs 3,310 | Target: Rs 3,850 | Return: 10 percent
The stock underwent a significant upward move following the lows of 2020, soaring from Rs 800 to approximately Rs 3,600 within a span of two years. After reaching its peak in November 2021, the stock entered a phase of time and price correction, forming a Symmetrical Triangle pattern.
While breaking above this pattern in June 2023, it lacked momentum and underwent further consolidation within a box pattern. Last week, the stock staged a robust breakout with a substantial spike in volumes, signaling the initiation of another bullish leg.
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