Rupak De, Senior Technical analyst at LKP Securities
Nifty remained volatile on the last day of the March F&O expiry, March 29. However, the overall trend has not changed as the benchmark Nifty settled below the resistance level of 17,250. The critical short-term moving average, the 50 DMA (days moving average - 17,571), is sitting well above the current value of the index.
The ongoing sideways trend may persist until there is a decisive breakout above 17,250. A decisive breakout above 17,250 may take the index for a ride to the 17,500–17,600 zone, where bears will be waiting.
On the lower end, 16,900 may continue to act as crucial support, where bulls have placed a tough guard. A decisive fall below 16,900 may take the Nifty towards the lower levels.
The Bank Nifty index witnessed strong buying momentum in the second half of the session and ended above the level of 40,000. The index to confirm the breakout needs to sustain above this level in the upcoming session. The undertone remains bullish and one should keep a buy-on-dip approach as long as the index stays above the level of 39,500.
Here are three buy calls for the short term:
Indian Bank: Buy | LTP: Rs 291 | Stop-Loss: Rs 279 | Target: Rs 320 | Return: 10 percent
The stock has given a strongly falling trend line breakout on the daily chart, suggesting a rise in optimism. Besides, the stock has been sustaining above the critical short-term moving average.
Also, the price has moved up sharply above its recent consolidation. The current setup indicates a possibility of a further up move, which can take the stock towards Rs 320. On the lower end, support is visible at Rs 279.
Sun Pharmaceutical Industries: Buy | LTP: Rs 992 | Stop-Loss: Rs 959 | Target: Rs 1,060 | Return: 7 percent
The stock has moved above its recent consolidation, suggesting a rise in optimism. Besides, the price has moved above the critical near-term moving average, suggesting a possibility of a price rise in the near term.
The RSI (relative strength index) is in the bullish crossover. The current setup indicates a possibility of a further up move, which can take the stock towards Rs 1,060. On the lower end, the support is visible at Rs 959.
Aditya Birla Fashion and Retail: Buy | LTP: Rs 211 | Stop-Loss: Rs 206 | Target: Rs 225 | Return: 7 percent
On the daily chart, the stock has formed a Morning Doji star, which indicates a possibility of a bullish reversal. The momentum oscillator RSI is in a bullish crossover and may come out of the oversold zone.
The current setup indicates the possibility of a further upmove, which can take the stock towards Rs 225. On the lower end, support is visible at Rs 206.
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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