The Nifty took a breather after two straight weeks of recovery and managed to withhold the crucial 19,500 zone with a cut of over a percent in the week ended October 20.
The market conditions remain tentative till global uncertainty prevails and the same could be seen on the technical charts. As far as levels are concerned, the bullish gap of 19,490-19,450 withholds immediate support, followed by 19,400, while any breakdown could disrupt the ongoing view, and the recent swing low of 19,333 would become very much in the vicinity.
On the higher end, 19,700-19,750 is expected to act as an immediate hurdle, followed by the formidable resistance of 19,850-19,880 (bearish gap) and an authoritative breakthrough could only re-strengthen the lost momentum to the bulls of D-Street.
Going ahead, we would likely remain cautious amid the ongoing geopolitical scenario, which may be deceptive and could trap the traders on either side. Hence, one needs to follow the aforementioned levels thoroughly and in the meantime, stay abreast with the geopolitical developments.
Here are two buy calls for short term:
Railtel Corporation of India: Buy | LTP: Rs 235 | Stop-Loss: Rs 220 | Target: Rs 252 | Return: 7 percent
Railtel has been in a secular up trend and is firmly hovering above all its significant EMAs (exponential moving average) on the daily chart, indicating inherent strength.
In the last couple of sessions, the counter has gained some traction and is gradually nearing the all-time high zone. Also, the primary technical indicators align with the price movement, suggesting continuation in the northward journey for the counter in the comparable period.
Hence, we recommend buying Railtel on dips at around Rs 230-232, with a stop-loss of Rs 220 and target of Rs 252.
Ugro Capital: Buy | LTP: Rs 287.30 | Stop-Loss: Rs 270 | Target: Rs 300-305 | Return: 6 percent
Ugro Capital has seen a smart recovery from the 50 percent Fibonacci retracement of the recent rally on the weekly time frame, indicating an early sign of reversal. Recently, the counter has seen some buying traction, placing it above all the EMAs on the daily chart.
On the oscillator front, the MACD (moving average convergence divergence) has seen a positive crossover from the oversold territory, affirming a resurgence in the counter. Considering the parameters, a gradual up move is expected to be seen in the near period.
Hence, we recommend buying Ugro Capital on dips at around Rs 282-284, with a stop-loss of Rs 270 and target of Rs 300-305 per share.
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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