The Nifty index has achieved a new all-time high, driven by a renewed sense of optimism. This rally was backed by a consolidation breakout observed on the daily chart, indicating a strong upward movement.
Additionally, the Nifty index has successfully invalidated a Dark Cloud Cover pattern on the weekly chart. It's worth noting that failed patterns often result in more significant price movements than the initial pattern itself.
In the short term, the overall trend for the Nifty index is expected to remain positive as long as it stays above the support level of 18,700. This level is significant because Put writers, who provide downside protection, are actively positioned there to prevent a substantial decline in the index.
The immediate resistance for the Nifty index is identified at 19,000. If the index breaks above this level convincingly, it may induce an upward movement towards 19,450.
The Bank Nifty index experienced a strong bullish momentum as the bulls maintained control and pushed the index higher throughout the day. The previous resistance level of 44,000 has now transformed into a strong support level, providing a cushion for the bulls.
On the upside, the immediate hurdle is now at 44,500, where call writing is visible. Once this level is surpassed, it is likely to lead to further upside towards the 45,000 mark. Traders and investors should adopt a buy approach, using the mentioned support level as a stop loss and waiting for higher levels to be achieved.
Here are three buy stocks for short term:
Sun Pharmaceutical Industries: Buy | LTP: Rs 1,022 | Stop-Loss: Rs 998 | Targets: Rs 1,100-1,120 | Return: 10 percent
Sun Pharma witnessed a strong breakout on the daily chart accompanied by increased volumes. The stock surpassed the previous two-week high, indicating a bullish momentum.
The momentum indicator, RSI (relative strength index), confirmed the buy signal with a crossover. The stock has a support level at 20-day moving average (20-DMA) positioned at Rs 998, which can act as a cushion for the bulls. The potential upside targets for Sun Pharma are at Rs 1,100 and Rs 1,120.
Tata Motors: Buy | LTP: Rs 587 | Stop-Loss: Rs 574 | Targets: Rs 605-610 | Return: 4 percent
Tata Motors has moved above the previous congestion on the daily chart, suggesting a rise in optimism. On the daily timeframe, the stock has been sustaining above the near-term moving average.
Additionally, the RSI is in a bullish crossover. Over the short term, the stock is likely to move towards Rs 610; whereas, on the lower end, support is pegged at Rs 574.
NTPC: Buy | LTP: Rs 189 | Stop-Loss: Rs 184 | Target: Rs 195-199 | Return: 5 percent
NTPC recently experienced a consolidation breakout on the daily chart accompanied by increased volumes. The stock's momentum indicator, RSI, confirmed a buy signal with a crossover.
It also surpassed the previous week's high on a closing basis. The overall undertone for NTPC appears extremely bullish.
The stock has strong support at Rs 184, which can act as a foundation for further upward movement. The potential upside targets for NTPC are at Rs 195 and Rs 199.
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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