Pravesh Gour, Senior Technical Analyst at Swastika Investmart
The Nifty index is currently trading in a sideways pattern, but with a positive bias, as it shows respect for its 10-day moving average (DMA). Despite facing resistance near the 18.800 level, it has not experienced a significant correction and appears poised to regain its bullish momentum, targeting levels around 18,888-19,000.
On the downside, the strong support levels to watch for are 18,550 and 18,450.
Similarly, the Bank Nifty index is also trading sideways, while maintaining its respect for the 20-DMA. A strong resistance area is observed around 44,400-44,500, and a breakthrough above this range could potentially lead to a move towards 45,000 level.
However, if the index starts trading below the 20-DMA, the next support level to monitor would be 44,300.
Here are three buy calls for short term:
Kirloskar Ferrous Industries: Buy | LTP: Rs 488 | Stop-Loss: Rs 440 | Target: Rs 584 | Return: 20 percent
The stock has broken out of a long consolidation period. A breakout from this consolidation suggests a potential shift in market sentiment and an increased likelihood of a sustained move in the price. On the weekly chart, the counter has experienced a breakout from a Flag formation, suggesting a potential continuation of the price move in the direction of the breakout.
The overall structure of the counter is very lucrative, as it is trading above all its important moving averages.
The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.
On the upside, Rs 500 is an important psychological level; above this, we can expect a move towards Rs 580+. On the downside, a cluster of moving averages at around Rs 440 is a strong demand zone during any correction.
TVS Electronics: Buy | LTP: Rs 398 | Stop-Loss: Rs 360 | Target: Rs 474 | Return: 19 percent
On the daily chart, a triangular formation has broken out, with considerable volume in support. Breakouts from chart patterns, such as triangles, are often seen as bullish signals, indicating a potential continuation of the upward trend. The high volume during the breakout further reinforces the significance of this move.
The overall structure of the counter is very lucrative, as it is trading above all its important moving averages.
While the momentum indicator MACD is sustaining the current strength, the relative strength index (RSI) is also poised favourably.
It has a psychological resistance level of Rs 410. If the price manages to break above the Rs 410 resistance level with conviction, it suggests increased bullish momentum and the potential for further upside. In the near term, this could lead to a target price of Rs 470+ or even higher.
On the downside, if there is a correction, the major support level is identified at Rs 360.
Kalyan Jewellers India: Buy | LTP: Rs 115 | Stop-Loss: Rs 107 | Target: Rs 132 | Return: 15 percent
The counter is forming a triangle pattern after a long consolidation. But it is facing trendline resistance at Rs 116 levels. It is trading above all important moving averages. The structure of the counter becomes so lucrative for long-term investors.
On the upside, Rs 116 is an immediate resistance area; above this, we can expect a run-up towards Rs 130+ levels in the near term. On the downside, Rs 107 is major support in any correction.
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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