By Kunal Shah, senior technical & derivative analyst at LKP Securities
The Nifty index encountered a robust resurgence of bearish momentum, leading to considerable selling pressure at elevated levels. Amidst this downturn, the addition of substantial open interest in the 19,500 CE options signifies that the index is poised to expire below the 19,500 mark.
In terms of technical levels, the index's immediate support on the downside is evident in the range of 19,300-19,250. A failure to sustain above this level could potentially trigger a continuation of the downward movement.
The Bank Nifty index experienced a significant bearish takeover, leading to a rapid correction of 600 points from the day's high. As the index navigates this downward movement, its next significant support on the downside is positioned at 44,000.
This level is crucial, given the substantial open interest built up on the Put side. The overall market sentiment remains bearish, with considerable resistance anticipated around the range of 44,500 to 44,700 levels.
Here are three buy calls for the next 2-3 weeks:
Info Edge India: Buy | LTP: Rs 4,369.65 | Stop-Loss: Rs 4,200 | Targets: Rs 4,600-4,650 | Return: 6 percent
Naukri stock displayed a robust breakout on the daily chart, supported by a substantial increase in trading volumes. This breakout not only surpassed the previous 50-day high but also signified a potential change in trend direction.
The momentum indicator RSI (relative strength index) confirmed this bullish shift with a positive crossover, underlining the strength of the buying sentiment.
In terms of support and resistance levels, the stock finds support at Rs 4,200, which acts as a cushion for potential declines. On the upside, the stock's potential target is around Rs 4,550 to Rs 4,600, suggesting a favourable environment for further price appreciation.
Sterlite Technologies: Buy | LTP: Rs 165.85 | Stop-Loss: Rs 150 | Targets: Rs 180-200 | Return: 20 percent
Sterlite Technologies exhibited a strong breakout on the daily chart, accompanied by a significant surge in trading volumes. This breakout was further validated by a breach of a falling trendline, indicating a reversal of the previous downtrend.
The momentum indicator RSI's rise above the 60 level confirmed the increasing strength in the stock's momentum.
In terms of technical levels, the stock has a support base of around Rs 150, which provides a potential cushion against downward movements. On the upside, the stock's potential targets lie at Rs 180 to Rs 200, implying an optimistic outlook for further price gains.
HFCL: Buy | LTP: Rs 72.85 | Stop-Loss: Rs 69 | Targets: Rs 80-86 | Return: 18 percent
HFCL is currently experiencing robust momentum, evident from both the daily and weekly charts, with this movement supported by volume trends as indicated by the RSI.
The stock is on the cusp of breaking out from a falling trendline on the weekly chart, signifying a potential reversal in its trend.
Moreover, HFCL is trading above its short-term moving average, specifically the 20-day moving average, positioned at Rs 69. This signifies a positive short-term trend.
Looking ahead, the stock's potential upside is anticipated to reach levels around Rs 80 to Rs 86, indicating optimistic prospects for further price appreciation.
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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