The Nifty 50 has formed a bearish engulfing pattern on the daily chart, indicating a potential pause in the ongoing rally. The momentum indicator RSI (relative strength index) shows a bearish crossover, signalling weakness in the near term. The Nifty was down 142 points at 22,055.
Immediate support for the benchmark is seen at 22,000 and a decisive drop below this level could lead the index towards 21,700. On the upside, the resistance is identified at 22,160.
The Bank Nifty index experienced a volatile trading session during the weekly expiry and encountered resistance around 47,300 levels. The index is stuck in a broad range of 46,500-47,500 and faces limitations on further upside until it surpasses the 47,300 mark.
The immediate support stands at 46,800, and a breach below this level could intensify selling pressure, potentially pushing the index towards 46,500.
Here are two buy calls and one sell recommendation for short term:
Gujarat State Petronet: Buy | LTP: Rs 374 | Stop-Loss: Rs 358 | Target: Rs 388/396 | Return: 6 percent
The stock is exhibiting a strong uptrend pattern with higher highs and higher lows, supported by its recent bounce off the 38 percent Fibonacci level and the 20-day moving average.
The RSI approaching a bullish crossover signals a potential long entry opportunity. Consider initiating positions between Rs 368-372, with a stop-loss at Rs 358, targeting gains at Rs 388 and Rs 396.
Nestle India: Buy | LTP: Rs 2,544 | Stop-Loss: Rs 2,470 | Target: Rs 2,680/2,750 | Return: 8 percent
The stock has established a consolidation base, notably at the 61.8 percent Fibonacci support level, accompanied by a bullish Three White Soldiers candlestick pattern.
Sustained trading above the 20-day EMA (exponential moving average) further reinforces bullish sentiment. With RSI nearing a bullish crossover, it presents an opportune moment to initiate a long position, targeting gains in the range of Rs 2,680-2,750, with a stop-loss at Rs 2,470.
Coromandel International: Sell | LTP: Rs 1,085 | Stop-Loss: Rs 1,121 | Target: Rs 1,040/1,020 | Return: 6 percent
The stock has closed at its lowest point in the last few days. On the higher end, it has encountered resistance at the 21-day exponential moving average (21EMA).
The momentum indicator RSI is on the verge of a bearish crossover. On the lower end, there is a possibility of a decline towards the range of Rs 1,040-1,020. Resistance on the higher end is identified at Rs 1,121.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
