The Nifty snapped a two-day losing streak and ended higher on August 21 on the back of buying in metals, power and IT stocks. At close, the Nifty was up 83.5 points at 19,394.
Short term trend of the Nifty is weak as it trades below its 5, 11 and 20-day EMA (exponential moving average). Downward sloping trendline resistance, adjoining the highs of July 20, 2023, August 1, 2023 and August 9, 2023 comes around 19,500 levels. On the derivatives side, we have seen aggressive Call writing at 19,400-19,500 levels.
Therefore, on the higher side, 19,400-19,500 can be considered as an immediate resistance for the Nifty. Swing high of 19,645 could act as a far resistance for the Nifty.
Low of last week is placed at 19,253 which could act as an immediate support for the Nifty. Positional support is expected at 19,100, which happens to be the level derived from upward sloping trend line, adjoining major swing tops of October 2021 (18,604) and December 2022 (18,887).
Broadly speaking, the Nifty is in the range of 19,100-19,645 levels. A close above 19,645 or below 19,100 will dictate the clear trend. Positional traders are advised to hold longs with stop-loss of 19,100 in the Nifty on the closing basis.
The broader market indices like Midcap and Smallcap have outperformed in the CY22 where they have gained 21 percent as compared to 7 percent rise in the Nifty till now. Moreover, they have continued their outperformance during the recent corrective phase of the Nifty and therefore we expect their outperformance to continue for the coming weeks.
Here are three buy calls for the next 3-4 weeks:
Indian Bank: Buy | LTP: Rs 408 | Stop-Loss: Rs 385 | Targets: Rs 432-450 | Return: 10 percent
The stock price has broken out on the weekly and monthly chart with higher volumes. Momentum Oscillators like - RSI (relative strength index 11) and MFI (money flow index 10) are sloping upwards and placed above 60 on the weekly chart, indicating strength in the current uptrend of the stock.
PSU banks as a sector is showing strength on the short and medium term chart.
Antony Waste Handling Cell: Buy | LTP: Rs 351 | Stop-Loss: Rs 320 | Targets: Rs 380-402 | Return: 14.5 percent
The stock price has broken out on the daily and weekly chart by surpassing multiple top resistance of Rs 335 odd levels with higher volumes. Stock price has broken out from the downward sloping trendline on the weekly chart.
Oscillators like RSI (11) and MFI (10) are sloping upwards and placed above 60 on the weekly chart, indicating strength in the stock.
Eveready Industries: Buy | LTP: Rs 374 | Stop-Loss: Rs 350 | Targets: Rs 400-420 | Return: 12 percent
The stock price has broken out on the daily chart with higher volumes. Stock price has broken out from the downward sloping trendline on the weekly line chart.
Short term trend of the stock is positive as stock price is trading above its important short term moving averages. Plus DI (directional index) is trading above minus DI while ADX (average directional indicator) line is placed above 25, indicating stock price is likely to gather momentum in the coming days.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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