Despite a week-long tug-of-war between bulls and bears, prices closed the week with no major change ending a tad below the 19,650 mark. From a technical standpoint, little has altered last week, as prices oscillated within a defined range.
On the daily chart, prices stayed within a specific range, with 19,500 serving as immediate support and 19,750 - 19,800 as formidable resistance. September concluded with a 2 percent gain, although the late sell-off in the last two weeks was disheartening.
Having said that, prices defended the critical support levels of the 50SMA and 61.8 percent retracement on a weekly basis. If prices continue to hold and break above the mentioned resistance, October could potentially turn out in the favour of the bulls.
Global cues will play a crucial role in this scenario; hence, one needs to keep a close eye on them.
On the downside, the 19,500 - 19,550 range provided strong support and should be considered a pivotal level. A breach below this range could trigger further declines, with levels around 19,300 marked by the 89-day EMA and the starting point of the recent rally at 19,200 possibly becoming the next downside target.
Traders should closely track these levels and make their trading decisions accordingly.
Here are two buy calls for short term:
Dr Lal PathLabs: Buy | LTP: Rs 2,524.35 | Stop-Loss: Rs 2,402 | Target: Rs 2,725 | Return: 8 percent
It has seen a spectacular run in this financial year, garnering over 35 percent returns for its investors. But as the overall technical structure of the stock remains robust and recent breakout above its swing highs, adds further tailwinds to the stock; making it ripe to resume its uptrend.
The stock also trades firmly above all its major EMAs (exponential moving average), signaling strong momentum in the stock and has formed a long bodied bullish candlestick line on last Friday on its daily charts.
We recommend buying for a trading target of Rs 2,725. The stop-loss can be placed at Rs 2,402.
RBL Bank: Buy | LTP: Rs 252.75 | Stop-Loss: Rs 243 | Target: Rs 270 | Return: 7 percent
This midsized private banking stock has been one of the outperforming stocks in the space. In fact, it has outnumbered some of its larger peers by a fair margin in the last 2 – 3 months.
On Friday, the stock prices broke out from its recent consolidation range in the upward direction with decent volumes. With this stock prices have reached their highest levels since March 2021.
Considering the upward sloping ‘RSI-Smootened’, we expect the northward direction to continue in the stock. Taking all the positive indicators in mind, traders can look to buy for a near-term target of Rs 270. The strict stop-loss needs to be placed at Rs 243.
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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