Rupak De, Senior Technical analyst at LKP Securities
The Nifty has given a falling channel breakout on the daily timeframe, pointing towards a bullish trend reversal. Besides, the index has closed above the critical moving average for the second consecutive day. A positive crossover in the momentum indicator RSI will boost sentiment.
Going forward, the market will remain buy-on-dips as long as it remains above 17,500. On the higher end, immediate resistance is visible at 17,700; above which the index may move up towards higher levels.
Meanwhile, Bank Nifty continued its rally on the upside, and dips were well-bought. The index surpassed the level of 40,000 last week, and since then there has been a one-way rally.
The index is now trading around the next resistance zone of 41,000, and if it sustains above that in the upcoming week, the rally might continue to take the index towards the 42,000 mark. The lower-end support is visible at the 40,500.
Here are three buy calls for short term:
HDFC Bank: Buy | LTP: Rs 1,666 | Stop-Loss: Rs 1,615 | Target: Rs 1,725-1,776 | Return: 7 percent
The stock has given a swing high breakout on the daily chart, suggesting a rise in bullish bets. Besides, the stock has moved above the critical moving average on the daily timeframe. The momentum oscillator RSI (relative strength index 14) is in bullish crossover.
Over the short term, the stock is likely to move towards a higher level. On the higher end, resistance is visible at Rs 1,725, above which further upside movement can happen till Rs 1,776. On the lower end, support is placed at Rs 1,615.
Tata Motors: Buy | LTP: Rs 438 | Stop-Loss: Rs 417 | Target: Rs 445-460 | Return: 5 percent
The stock has given a falling trendline breakout on the daily chart, suggesting a rise in optimism. Besides, the stock has moved above the 200DMA, which points towards a positive trend.
The momentum indicator is in bullish crossover. Over the short term, the stock is likely to move towards Rs 460. On the lower end, support is placed at Rs 417.
Indian Hotels: Buy | LTP: Rs 327 | Stop-Loss: Rs 318 | Target: Rs 340-350 | Return: 7 percent
The stock is on the verge of a breakout from a big sideways consolidation range. The stock's immediate hurdle is at Rs 330, and once it surpasses this level, we will witness a sharp move on the upside towards Rs 340-350 zone.
The momentum indicator RSI has also given a positive crossover on the daily chart, which confirms the strength of the stock. The lower-end support is visible at Rs 318, which will act as a cushion for the bulls.
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