The market ended in the negative territory but managed to recover from its intraday lows on January 2. The Nifty maintained its position above 21,600, while the Sensex experienced a decline of 379 points, closing at 71,892. The Nifty recorded a decrease of 82 points, settling at 21,660. The Nifty Bank lost 521 points to close at 47,713, and the Midcap Index slipped 73 points to 46,400.
The Nifty is hovering near the resistance level at 21,800, with 21,550 serving as an immediate support. A drop below 21,550 could lead to profit-booking, targeting the 21,350 level. The market is anticipated to display sideways movement with increased volatility.
In the case of Bank Nifty, it is encountering resistance at the 48,000 levels, while 47,400 acts as an immediate support. Further support levels include 47,200 and 47,000. On the upside, the immediate resistance area is 48,000–48,200, and surpassing this could lead to a target zone of 48,600.
Here are three buy calls for short term:
Divis Laboratories: Buy | LTP: Rs 4,030 | Stop-Loss: Rs 3,840 | Target: Rs 4,354 | Return: 8 percent
The counter has experienced a breakout of an Inverse Head and Shoulder pattern over a longer timeframe. The breakout is accompanied by significant trading volume and has closed above the breakout level, marking a significant milestone after a span of 16 months.
The counter's overall structure is highly favorable, as it is currently trading above all its important moving averages. The RSI (relative strength index) shows positive momentum, and the MACD (moving average convergence divergence) supports the counter's current strength.
On the higher side, Rs 4,200 is acting as an important psychological level; above this, we can expect a level of Rs 4,350+ in the near-short term. On the downside, if there is a correction, the major support level is identified at Rs 3,840.
Shipping Corporation of India: Buy | LTP: Rs 174 | Stop-Loss: Rs 159 | Target: Rs 194 | Return: 12 percent
The counter is in a classical uptrend, and it has witnessed a breakout of a triangle formation to resume its uptrend. It retested its previous breakout level at Rs 155 and started a new leg of rally towards Rs 190. The breakout coincides with rising volume, and it manages to sustain itself above the breakout level.
It is trading above its all-important moving averages, with a positive bias in momentum indicators.
On the upside, Rs 180 is an immediate resistance area; above this, we can expect a run-up towards Rs 190+ levels in the near term. On the downside, Rs 159 levels will act as a strong support level. It is respecting its 9 and 20-DMA beautifully, which is a classic sign of trend strength.
Paradeep Phosphates: Buy | LTP: Rs 76.80 | Stop-Loss: Rs 70 | Target: Rs 86 | Return: 12 percent
The counter has witnessed a breakout of a long consolidation pattern with strong volume on the weekly chart. It has also broken a Cup-and-Handle formation. The overall formation of the counter is very classical, as it is trading above its all-important moving averages with a positive bias in momentum indicators.
On the upside, Rs 80 is an important psychological level; above this, we can expect a move towards Rs 86+. On the downside, a cluster of moving averages at around Rs 70 is a strong demand zone during any correction.
Both the RSI (relative strength index) and MACD (moving average convergence divergence) indicators are supportive of the current strength of the stock's momentum.
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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