By Rupak De, senior technical analyst at LKP Securities
Nifty remained within trading range as traders chose to wait ahead of the Fed Chairman Jerome Powell's speech at the IMF today, November 9. Nonetheless, the prevailing trend appears bullish as the Nifty closed above a critical short-term moving average.
Notably, significant support from Put writers is evident at 19,400, where they have established a substantial position. On the lower side, support levels are situated at 19,400/19,300. Conversely, resistance on the higher end is positioned at 19,500, where Call writers have added significant positions.
Bank Nifty traded sideways throughout the day. Nevertheless, the prevailing trend appears to be bullish as the index closed above a critical short-term moving average.
The support is established at 43,500 on the lower end. As long as the index maintains its position above 43,500, a "buy on dips" strategy is considered appropriate. On the higher end, there is potential for the index to advance towards 44,200.
Here are three buy calls for short term:
ONGC: Buy | LTP: Rs 195 | Stop-Loss: Rs 187 | Target: Rs 215 | Return: 10 percent
ONGC is showing strong technical indicators for potential gains. The stock has broken a significant monthly resistance at Rs 193, maintaining its position above it. Trading above crucial moving averages and a bullish RSI (relative strength index) crossover signal increasing strength.
Traders may consider a long position within Rs 195, with a stop-loss at Rs 187 and for a target of Rs 215. This setup suggests a bullish outlook, but prudent risk management is essential in stock trading.
The stock has been displaying an upward trajectory with a V-shaped recovery on the daily timeframe. Furthermore, it has maintained its position above the critical moving average.
The RSI is showing a bullish crossover. On the higher end, there is potential for the stock to advance towards Rs 3,460, while support on the lower end is situated at Rs 3,239.
Chambal Fertilisers & Chemicals: Buy | LTP: Rs 300 | Stop-Loss: Rs 292 | Target: Rs 324 | Return: 8 percent
The stock is currently trading with a fresh swing breakout on the daily chart, accompanied by increasing trading volume. This indicates a potential for further upward movement in the stock.
Furthermore, the stock has been consistently maintaining a pattern of higher highs and higher lows for a few days, signaling a positive trend.
Based on this pattern, there is a technical expectation of reaching levels around Rs 312 to Rs 324 on the upside.
To manage risk, it's advisable to maintain a stop-loss at Rs 292 on a closing basis. For potential investors, a good entry point is at Rs 298, and consider buying on dips around Rs 296.
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