Despite sustained volatility, bulls stayed resilient and ended the day in the green, with the Nifty at 21,929, making a commendable 0.72 percent gain on February 6. The hourly chart shows strength in both MACD (moving average convergence divergence) and RSI (relative strength index) indicators, hinting at a sustained positive momentum.
Anticipating market consolidation within a broader range, potential resistance at 22,127, representing all-time highs, looms ahead, while immediate support rests at 21,700.
The Donchian channel, a trend-following indicator, asserts the Nifty's bullish status as long as it remains above its middle band at 21,650. Noteworthy momentum in IT and metals continues to bolster the index.
In contrast, the Bank Nifty concluded at 45,691, marking a 0.29 percent decline, with MACD indicators maintaining a 'neutral' stance, signalling potential rangebound movement. A decisive directional shift awaits only upon breaking the 46,600 range, while the volume profile highlights robust support at 45,200 levels for the upcoming trading session.
Here are three buy calls for short term:
Thermax: Buy | LTP: Rs 3,240 | Stop-Loss: Rs 3,050 | Target: Rs 3,560 | Return: 10 percent
The stock actively presents a bullish scenario on its daily chart, showcasing a Cup and Handle pattern and surpassing both the 20 and 50 SMA (simple moving average), affirming robust momentum. Inching close to breaching all-time highs, the stock's upward trajectory gains further credence from strong volumes, reflecting heightened market participation.
This RSI (relative strength index) indicator provides an appealing picture of potential bullish trends. The stock edged higher on strong volumes and above key moving averages.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 3240 for the target price of Rs 3,560. Stop-loss can be kept at Rs 3,050.
Tata Steel: Buy | LTP: Rs 145 | Stop-Loss: Rs 138 | Target: Rs 154 | Return: 6.5 percent
The stock presents a highly favourable outlook, marked by a consolidation breakout with a decisive close above resistance levels. This breakout aligns with an observable upward trend, fortified by robust trading volumes, underscoring significant market support.
Notably, the RSI remains at 67 levels while the positive stance of the MACD further reinforces the positive sentiment.
Furthermore, the emergence of a Bullish Flag pattern adds another layer of bullish indication, suggesting potential upward momentum.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 144.6 for the target price of Rs 154. Stop-loss can be kept at Rs 138.
Siemens: Buy | LTP: Rs 4,217 | Stop-Loss: Rs 4,030 | Target: Rs 4,590 | Return: 9 percent
Trading at Rs 4,216.7, Siemens exhibits a robust uptrend, recently hitting a new record high (Rs 4,335). Stock took a breather and retraced back towards its previous swing low on relatively lower volumes.
The stock remains steady near its previous swing low (Rs 4,030) where the 20 SMA remains intact, indicating that the trend is bullish. A positive crossover in the stochastic daily indicator enhances the bullish outlook.
We anticipate that the stock to scale higher towards Rs 4,590 levels. Stop-loss can be kept at Rs 4,030.
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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