Rupak De, Senior Technical Analyst at LKP Securities
The Nifty has recently experienced a bearish turn as it slipped below the rising channel on the hourly chart, signalling a rise in bearish bets. Additionally, the index value has fallen below the 50-hour moving average, providing further confirmation of a short-term bearish trend. This correction was somewhat expected, as the Nifty had undergone a significant rally without any substantial pullback.
Despite the near-term bearish outlook, the larger trend still favours bulls, as long as the Nifty remains above the crucial support level of 17,950.
On the immediate basis, a post-correction pullback may take the Nifty back to 18,300, where bears might be awaiting to enter the market. A rejection from the 18,300 level may trigger selling pressure once again. Immediate support is visible at 18,100.
The Bank Nifty index continued to face selling pressure from a higher level as the index closed below the level of 44,000. The highest open interest on the Call side is built up at 44,000 strike and a break above this will resume the up move. The downside support stands at 43,500 and a break below this will accelerate the down move.
Here are two buy calls and one sell call for short term:
IDBI Bank: Buy | LTP: Rs 56.65 | Stop-Loss: Rs 54.40 | Target: Rs 61 | Return: 8 percent
The stock has recently experienced a consolidation breakout on the daily chart, indicating a potential upward movement. It found support at the 20-day moving average (20DMA) before starting to move up.
The relative strength index (RSI) is showing a bullish crossover, further suggesting a positive sentiment for the stock. Given these indicators, it is likely that the stock will continue its upward trajectory and potentially reach Rs 61 level. The support is placed at Rs 54.40.
ACC: Sell | LTP: Rs 1,758 | Stop-Loss: Rs 1,800 | Target: Rs 1,650 | Return: 6 percent
The stock encountered resistance at the 55-day exponential moving average (55EMA), leading to a decline in its price. Furthermore, there was a consolidation breakdown observed on the lower timeframe, suggesting a bearish trend.
The RSI is showing a bearish crossover, indicating a negative sentiment for the stock. In terms of potential price levels, there is a possibility of the stock slipping towards Rs 1,650 on the lower end. On the higher end, the resistance is expected at Rs 1,800.
GMDC: Buy | LTP: Rs 167.30 | Stop-Loss: Rs 160 | Target: Rs 182 | Return: 9 percent
The stock has given a breakout from a bullish Pennant pattern with a sharp surge in volumes. The momentum indicator RSI has given a positive crossover on the daily chart which confirms the buy signal. The lower-end support is visible at Rs 160 and the potential upside target is Rs 182.
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!
