The Nifty50 swung between gains and losses on November 20 before closing with minor losses. At close, the index was down 38 points at 19,694, while volumes fell sharply compared to the previous day.
The Nifty had last week broken out from the downward sloping trendline, adjoining the highs of September 15 and October 17. Short-term trend of the index remains positive as it is placed above its 5, 11 and 20-day EMA (exponential moving average).
In the Option segment, we have seen Put writing at the 19,500-19,600 levels. This level coincides with the 11 and 20-day EMA which is placed at 19,555 and 19,496. Therefore, we believe that 19,500-19,600 levels to act as a strong support. Traders are advised to hold longs with stop-loss of 19,500 in Nifty on the closing basis.
The Nifty has formed a triple top chart pattern around 19,850 levels, suggesting strong resistance there. A decisive upside breakout of hurdles around 19,850-19,900 levels could eventually result in the index zooming into new all-time highs (above 20,222 levels) in the near term.
The broader market indices like midcaps and smallcaps continued their outperformance during the recent consolidation phase. The ongoing bullish trend is likely to continue in the broader market indices like midcap and smallcap segments for the coming weeks.
Here are three buy calls for the next 3-4 weeks:
Orient Cement: Buy | LTP: Rs 233 | Stop-Loss: Rs 216 | Targets: Rs 251-260 | Return: 12 percent
The stock price has broken out on the weekly line chart to close at all-time high levels. Stock price has been forming bullish higher top higher bottom formation on the weekly chart.
Momentum Indicators and Oscillators are showing strength in the stock.
IRFC: Buy | LTP: Rs 76.10 | Stop-Loss: Rs 69 | Targets: Rs 84-88 | Return: 16 percent
Indian Railway Finance Corporation (IRFC) price has broken out from the downward sloping trendline on the daily chart, adjoining the high of September 12 and October 17. Primary trend of the stock is positive as stock price is trading above important short and long term moving averages.
Oscillators like RSI (relative strength index 11) and MFI (money flow index - 10) are sloping upwards and placed above 50 on the daily chart, indicating strength in the stock.
Plus DI (directional indicator) is trading above minus DI while ADX (average directional index) line has started sloping upwards, indicating stock price is likely to gather momentum in the coming days.
Fortis Healthcare: Buy | LTP: Rs 360.55 | Stop-Loss: Rs 330 | Targets: Rs 395-415 | Return: 15 percent
The stock price has broken out from the downward sloping trendline on the daily chart, adjoining the high of July 31 and September 28, 2023. The stock price has broken out on the weekly and monthly chart with higher volumes. Hospital as a sector is looking strong on the short to medium term charts.
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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