On the monthly charts, the Nifty is sustaining above the breakout of a cup-and-handle pattern at life-high levels, indicating a strong positive undertone in the Index for the long term.
In the latest week, the stock has broken the last two week's low, indicating that profit-booking has happened at higher levels. We witnessed that the lower-top-lower-bottom formation in the Nifty Index on the daily charts since last few days indicating short-term corrective sign.
The momentum indicator RSI (relative strength index) is declining and sustaining below 50 mark on the daily charts indicating loosing positive momentum of the Index for the short term.
The short to medium term trend of the Nifty index looks corrective till 19,234 followed by 18,887 levels.
Here are three buy calls for short term:
PI Industries: Buy | LTP: Rs 3,682.75 | Stop-Loss: Rs 3,530 | Target: Rs 4,000 | Return: 8.6 percent
PI Industries after observing a noteworthy reversal around Rs 3,540 levels, which had earlier served as a resistance, we now see it operating as a solid base. The breakout from the downward sloping Wedge pattern, as seen in the daily chart, is a positive indicator, hinting at a likely uptrend and the potential beginning of a bullish phase.
In terms of daily performance, the stock has consistently held above the 12-day exponential moving average (EMA), a trendline that has reliably provided support during previous downturns. The stock's unflinching adherence to this pattern further underlines its robustness.
Moreover, the relative strength index (RSI) has broken out, reinforcing the bullish momentum indicated by the price action.
Looking ahead, we anticipate the prices to climb towards Rs 4,000 levels. It is recommended to set a stop-loss at Rs 3,530 based on closing prices to effectively manage potential downside risks.
IDBI Bank: Buy | LTP: Rs 64.40 | Stop-Loss: Rs 59 | Target: Rs 72.5 | Return: 12.6 percent
The stock is currently exhibiting a significant upward momentum, breaking free from the multi-year resistance level of Rs 61 that had been steadfast since January 2019.
The successful breakout from the Cup & Handle pattern further bolsters the start of a bullish trend.
Moreover, the MACD (moving average convergence divergence) indicator's positive crossover above the zero line adds to the confirmation of a rising momentum in the prices.
The stock's strong uptrend remains intact, as further verified by the price trading consistently above both the 12 and 26-day EMAs.
Considering all these positive indicators, we can infer that the stock is showing a powerful performance and promising prospects.
Looking ahead, we anticipate the prices to climb towards Rs 72.5 level. It is recommended to set a stop-loss at Rs 59 based on closing prices.
Laurus Labs: Buy | LTP: Rs 384.35 | Stop-Loss: Rs 365 | Target: Rs 440 | Return: 14 percent
Laurus Labs has formed Higher Top Higher Bottom formation on monthly charts since last 5 months indicating strong positive undertone. On the weekly charts, the stock has given A-B-C pattern breakout with volume confirmation which confirms the bullish structure of the stock.
The stock has given a Cup & Handle pattern breakout on the daily charts which strengthen the positive outlook of the stock.
Also the stock is sustaining above its important moving averages like 50, 100 & 200-day SMA (simple moving average) which shows the strong bullish sentiments of the stock.
The momentum indicator RSI on the weekly as well as on the daily timeframe is rising and sustaining above 55 levels reflecting presence of positive momentum.
We expect the prices to move higher till Rs 440 levels, where the stop-loss must be Rs 365 strictly on the closing basis.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
