The index formed a hanging man pattern on the daily chart, suggesting the possibility of a bearish reversal. The bearish formation around the crucial resistance of 21,000 amplifies the bearish sentiment.
The support lies at 20,850, below which the market may face a healthy correction in the short term. On the other hand, a move above 21,000 might trigger a resumption of the bullish trend.
The Bank Nifty index experienced profit-booking at higher levels in anticipation of the upcoming key RBI policy event. Despite this, the overall market sentiment remains bullish. It is advisable to adopt a buy-on-dip strategy, maintaining a positive outlook as long as the index sustains above the critical level of 46,400.
The immediate hurdle is positioned at 47,250, and a successful breach beyond this level is anticipated to pave the way for further upside momentum towards the 48,000 levels.
Here are three buy calls for short term:
Info Edge India: Buy | LTP: Rs 4,758 | Stop-Loss: Rs 4,500 | Target: Rs 5,000-5,100 | Return: 7 percent
Naukri stock is poised for a potential breakout as it forms a Cup and Handle pattern on the daily chart. The momentum indicator, RSI (relative strength index), has confirmed the buy signal with a positive crossover.
The stock has strong support at the lower end, around Rs 4,500, acting as a cushion for the bulls. Anticipated upside targets for Naukri stock are in the range of Rs 5,000 to Rs 5,100.
GNFC: Buy | LTP: Rs 737.5 | Stop-Loss: Rs 700 | Target: Rs 780-790 | Return: Rs 7 percent
Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) is currently in a robust uptrend, maintaining higher highs and higher lows on the daily chart. The stock has experienced a notable surge in volumes and is trading above its short-term moving averages.
The support level is identified at Rs 700, providing a strong foundation for the bullish trend. Potential upside targets for GNFC are estimated at Rs 780 to Rs 790.
FDC: Buy | LTP: Rs 410 | Stop-Loss: Rs 390 | Target: Rs 440-450 | Return: 10 percent
FDC stock has shaped a rounding bottom formation on the daily chart, accompanied by a surge in volumes. The momentum indicator RSI has provided a positive crossover and is sustaining above the level of 60, affirming the bullish sentiment.
The stock has a lower-end support at Rs 390, which acts as a foundation for the bulls. Potential upside targets for FDC are identified at Rs 440 to Rs 450.
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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