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.
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