The Nifty 50 failed to gain control above the 20-day moving average (DMA) and witnessed a sharp fall to resume its corrective move. It is likely to test the 50 DMA of 21,000, while 20,800 is the next support level.
Therefore, we can expect some pullbacks from 21,000–20,800 area. On the upside, 21,500 will be an immediate hurdle, while 20-DMA round 21,700 will remain a key challenge.
The Bank Nifty is a key laggard where it rejected its 50 DMA and slipped below its 100 DMA. The 200 DMA of around 44,650 will be a critical support where we can expect a buying interest.
While below 200 DMA, it may further weaken. On the upside, 45,500 will be an immediate hurdle, while 46,500 will be the key resistance at any pullback rally.
Here are three buy calls for short term:
Zydus Lifesciences: Buy | LTP: Rs 729 | Stop-Loss: Rs 680 | Target: Rs 800 | Return: 10 percent
The structure of the counter is bullish, as it has witnessed a breakout of long consolidation formation with huge volume on the daily chart, while on the weekly chart, it has given a breakout of a Cup and Handle pattern. It is coming out of a long consolidation range with a triangle formation breakout on the weekly chart.
It is trading above its all-important moving averages, with higher highs and higher low formations. On the upside, Rs 750 is the immediate horizontal resistance; above this, we can expect Rs 800+ levels in the near term. On the downside, Rs 680 will be taken as important support during any correction.
Anand Rathi Wealth: Buy | LTP: Rs 2,802 | Stop-Loss: Rs 2,500 | Target: Rs 3,134 | Return: 12 percent
Looking at the extended timeframe, the stock is displaying conventional bullish momentum by establishing higher highs and higher lows. In the shorter term, it broke out of a prolonged consolidation pattern with substantial trading volume. The stock's structure appears promising as it is currently trading above all significant moving averages.
The momentum indicators signal positive trends, with the relative strength index (RSI) showing a favorable position, and the moving average convergence divergence (MACD) experiencing an upward crossover at the centerline.
On the upside, the key psychological level of Rs 3,000 holds significance. If surpassed, there is potential for the stock to reach Rs 3,100 or higher in the near to short term. Conversely, on the downside, Rs 2,500 is expected to provide strong support in case of any corrections.
Global Health: Buy | LTP: Rs 1,130 | Stop-Loss: Rs 1,050 | Target: Rs 1,244 | Return: 10 percent
The counter is in a classical uptrend and now it is breaking out of a triangle formation to resume its uptrend. The breakout coincides with rising volume and it manages to sustain above breakout level despite weakness in the broader market.
It is trading above its all-important moving averages with a positive bias in momentum indicators. On the downside, a cluster of moving averages around the Rs 1,050 levels will act as a strong support level.
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