The Sensex and the Nifty showed modest gains but retreated significantly from their peak levels on January 9. The BSE benchmark climbed 31 points to reach 71,386, while the NSE bellwether advanced 32 points to 21,545, but the banking index declined 208 points, settling at 47,243.
The Nifty 50 is facing resistance at the 21,800 mark, but the 20-DMA of 21,450 will serve as an immediate support level; below this, we can expect some profit-booking towards the 21,000 mark; otherwise, range-bound moves will continue.
A move above 21,800 can lead to short-covering towards 22,000 and 22,200 levels on the Nifty 50.
The Bank Nifty is underperforming and has slipped below its 20-DMA. 46,900 is an immediate support level, while 46,400 is a key support level. On the upside, 48,000 is an immediate hurdle, while 48,500–48,800 is a critical resistance zone.
Here are three buy calls for short term:
Amber Enterprises India: Buy | LTP: Rs 3,400 | Stop-Loss: Rs 3,200 | Target: Rs 3,744 | Return: 10 percent
Amber is again gaining momentum after building a strong base at Rs 3,100 mark. On the weekly chart, we can observe a Flag formation, while there is a breakout of the bullish Triangle formation on the daily chart.
Now, a 20-DMA at Rs 3,200 is an important support level. On the upside, Rs 3,500 is an immediate horizontal resistance line; above this, bullish momentum may take it towards Rs 3,700+. There was a rounding bottom formation in the weekly time frame.
It is trading above all of its important moving averages, with a positive bias in momentum indicators.
Phoenix Mills: Buy | LTP: Rs 2,640 | Stop-Loss: Rs 2,460 | Target: Rs 2,954 | Return: 12 percent
On the longer timeframe, the counter has witnessed a breakout of a Flag formation with strong volume, while on the shorter timeframe, it has given a breakout of a long consolidation and a successful closing above Rs 2,500.
The counter's overall structure is highly favourable, as it is currently trading above all its important moving averages. The RSI (relative strength index) shows positive momentum, and the MACD (moving average convergence divergence) supports the counter's current strength.
On the higher side, Rs 2,800 is acting as an important psychological level; above this, we can expect a level of Rs 2,950+ in the near-short term. On the downside, if there is a correction, the major support level is identified at Rs 2,460.
Kalyan Jewellers India: Buy | LTP: Rs 382 | Stop-Loss: Rs 350 | Target: Rs 444 | Return: 16 percent
The counter is in an awesome uptrend with a breakout of a Triangle formation with strong volume. The overall structure of the counter is very lucrative, as it is trading above all of its important moving averages. On the higher time frame, there is a breakout of a Bullish Flag formation, which suggests much more potential upside in this counter. It has retested its previous breakout level of Rs 300 after hitting a fresh all-time high.
The momentum indicator RSI (relative strength index) is positively poised, whereas MACD (moving average convergence and divergence) is witnessing a centerline crossover on the upside.
On the higher side, Rs 400 is acting as an important psychological level; above this, we can expect the level of Rs 440+ in the near-short term, while on the lower side, Rs 350 will act as a major support during any correction.
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