The Nifty 50 remained strong after a gap-up opening. Through the day on March 27, it treaded and closed above 22,100. The short-term momentum appears positive, supported by a crossover in the RSI (relative strength index 14) indicator.
The trend is likely to remain positive as long as it stays above 22,000. On the higher end, the Nifty 50 could potentially move towards 22,300 and beyond in the short term.
The Bank Nifty encountered a period of sideways trading characterised by consolidation. However, as the session progressed, bullish momentum emerged. Despite this consolidation phase, the index concluded slightly below its 20-day moving average (20DMA) of 46,950.
A decisive breakthrough above this threshold is expected to instigate significant short-covering activity, potentially driving the index towards the 48,000 level.
The index is supported in the 46,500-46,400 range, and a breach below this range might intensify the selling pressure.
Here are three buy calls for the short term:
Zensar Technologies: Buy | LTP: Rs 609 | Stop-Loss: Rs 590 | Target: Rs 650 | Return: 7 percent
The stock has surpassed the previous swing high on the daily chart, indicating increased optimism among market participants. Moreover, the price has risen above the critical short-term moving average, affirming the uptrend in the stock.
Additionally, the RSI (14) has experienced a bullish crossover with a reading above 60, indicating strong momentum in the stock price. Consequently, there is a possibility of the stock moving towards higher levels around Rs 650 in the short term, with support placed at Rs 590.
Max Healthcare Institute: Buy | LTP: Rs 802 | Stop-Loss: Rs 774 | Target: Rs 900 | Return: 12 percent
The stock has given a consolidation breakout in its recent candle, indicating growing optimism in the stock. This recent rally is supported by an increase in volume, suggesting good participation in the stock.
Additionally, the stock has crossed above the critical short-term moving average on the daily timeframe, further bolstering the bullish sentiment.
The momentum indicator RSI has also experienced a bullish crossover. Consequently, based on the technical setup, the stock appears primed for a rally towards Rs 900 in the short term, with support positioned at Rs 774 on the lower end.
Indian Hotels: Buy | LTP: Rs 586 | Stop-Loss: Rs 574 | Target: Rs 630 | Return: 7.5 percent
The stock underwent consolidation before its recent breakout and subsequent rally, indicating growing optimism in the stock. This recent rally is supported by a significant increase in volume, suggesting widespread buying interest in the stock.
Additionally, the stock has crossed above the critical short-term moving average on the daily timeframe, further bolstering the bullish sentiment. The momentum indicator RSI has also experienced a bullish crossover.
Consequently, based on the technical setup, the stock appears primed for a rally towards Rs 630 in the short term, with support positioned at Rs 574 on the lower end.
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