Volatility ruled the Nifty throughout the session following a weak start on January 24. On the hourly chart, the index began displaying initial signs of a reversal. However, it closed below the resistance level of 21,500. A decisive move above 21,500 could potentially trigger a significant rally in the index.
On the downside, the support is seen at 21,400-21,350. A confirmed breakthrough above 21,500 may propel the index towards 21,700 and beyond.
After a brief downturn, the bulls made a strong comeback, successfully defending the crucial support level of 44,500, where fresh Put writing activities were observed.
Despite the rebound, the banking index is still navigating a downtrend. A potential pullback rally towards the 45,500 mark is anticipated. However, a significant development would be the index closing above 45,500, triggering further short-covering moves towards the 46,000 level, characterised by the highest open interest on the call side.
Here are three buy calls for short term:
NMDC Steel: Buy | LTP: Rs 54.60 | Stop-Loss: Rs 51 | Target: Rs 62 | Return: 13.5 percent
The stock has ascended following a consolidation period on the daily chart. It has consistently maintained levels above the crucial moving averages, indicating a positive trend.
The RSI (relative strength index) is in a bullish crossover, further supporting the positive momentum. In the short term, there is a potential for the stock to advance towards Rs 62. On the downside, the support is established at Rs 51.
Ceat: Buy | LTP: Rs 2,876 | Stop-Loss: Rs 2,640 | Target: Rs 3,100 | Return: 7.8 percent
The stock has been sustaining at the higher level following a swing high breakout. Besides, the stock has so far sustained above the critical moving averages, confirming the positive trend. Over the short term, the stock might move towards Rs 3,100; while a support is placed at Rs 2,640.
Power Grid Corporation of India: Buy | LTP: Rs 246 | Stop-Loss: Rs 235 | Target: Rs 278 | Return: 13 percent
The stock has given a consolidation breakout on the daily chart, suggesting a rise in optimism. Besides, the stock has so far sustained above the critical moving averages, confirming the positive trend. Over the short term, the stock might move towards Rs 278; while a support is placed at Rs 235.
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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