By Pravesh Gour, senior technical analyst at Swastika Investmart
Indian stock markets ended the session flat on September 26, with Sensex and Nifty closing marginally lower. The Nifty index is currently testing its 50-day moving average (DMA) at the 19,600 levels, indicating a critical level of support. The immediate obstacle lies at the 20-day DMA, positioned at 19,725.
A successful breach above this level (19,725) could trigger a short-covering rally, potentially leading to an upswing in the 19,800–19,850 range. Conversely, if the Nifty fails to maintain 19,600 levels, it may face additional downward pressure, possibly declining to levels between 19,500 and 19,300.
Meanwhile, the Bank Nifty has found support at its 100-day DMA, reinforcing its significance. The key resistance level for the Bank Nifty is at 45,000. An upward breakthrough past this level could pave the way for a short-covering rally, with a target around 45,400 levels.
Conversely, a decline below 44,400 may expose crucial support levels at 44,000 and 43,700.
Here are three buy calls for the short term:
Apar Industries: Buy | LTP: Rs 5,805 | Stop-Loss: Rs 5,370 | Target: Rs 6,684 | Return: 15 percent
The stock has recently broken out of a prolonged consolidation pattern on the daily chart, accompanied by significant trading volume. This breakout enhances the attractiveness of the stock for both short-term and long-term investment strategies, especially considering it maintains a position above all key moving averages.
Additionally, the technical indicators, including the relative strength index (RSI) and the moving average convergence divergence (MACD), align with the stock's current momentum, further reinforcing its strength.
In terms of price levels, the stock faces a notable psychological hurdle at Rs 6,000. A breach above this level could pave the way for a potential upward move towards Rs 6,600 and beyond. On the downside, Rs 5,370 serves as a robust demand zone, offering substantial support in the event of a correction.
CE Info Systems: Buy | LTP: Rs 1,774 | Stop-Loss: Rs 1,650 | Target: Rs 2,024 | Return: 14 percent
The counter is in bullish momentum and has witnessed a breakout of the triangle formation to continue this momentum for further upside, where the previous all-time high around Rs 1,900 is an immediate target level.
On the downside, the previous breakout level of Rs 1,650 is an immediate support level, while Rs 1,600/1,620 is also a strong demand zone. Momentum indicators are positively poised to support the current strength of the trend.
Maharashtra Seamless: Buy | LTP: Rs 608 | Stop-Loss: Rs 570 | Target: Rs 684 | Return: 12 percent
The counter is in a classical uptrend and a breakout of symmetrical triangle formation with strong volumes. The overall structure is very bullish as it trades above its all-important moving averages. Both the RSI (relative strength index) and MACD (moving average convergence divergence) indicators are supportive of the current strength of the stock's momentum.
On the upside, Rs 620 is an immediate resistance area; above this, we can expect a run-up towards Rs 680+ levels in the near term. On the downside, Rs 570 is a major support for 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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