The Nifty index spot was trapped in a range of about 200 points, which made it a slow week for the domestic markets. The index closed flat, oscillating between 19,870 and 19,670 in the absence of any major trigger.
From a technical standpoint, nothing has altered last week (ending November 24) as the Nifty was rangebound. Therefore, we continue to hold the belief that the outlook is to buy on dips.
Given how quickly the index has rallied to roughly 1,000 points, the latest pullback appears to be little more than a time-wise correction. 19,500–19,400 could provide early support for the current week in the event of some profit-booking. If the index rises above 19,900, then there is a chance that it may experience a prolonged upswing, leading to a new lifetime high.
Even the Nifty Bank index remained extremely flat throughout the last week. In the coming weeks, only a move above the swing high of 44,420 might reinforce the index and start a new uptrend.
On the downside, immediate support is at 43,000, and a breach of the same might drag the index towards 42,000 levels. The Nifty Bank index must move high for markets to remain optimistic. Further underperformance by the index can lead to a shift in momentum in favour of the bears.
Here are two buy calls for short term:
Tata Teleservices (Maharashtra): Buy | LTP: Rs 89 | Stop-Loss: Rs 78 | Target: Rs 105 | Return: 18 percent
It has corrected approximately 25 percent since reaching a high near Rs 110 on September 15, 2023. At the current juncture, it has taken support near the 200 daily exponential average, i.e., Rs 85 level, which is also the previous swing high.
On the indicator, the daily RSI has made an impulsive structure near the oversold zone of 30, which is looking lucrative. One can buy in the range of Rs 86–90 with a target of Rs 105, and the stop-loss would be Rs 78 on a daily close basis.
Chambal Fertilisers and Chemicals: Buy | LTP: Rs 308.65 | Stop-Loss: Rs 275 | Target: Rs 365 | Return: 18 percent
Chambal Fertilisers has been consolidating for some time on the weekly chart. Recently, it had a breakout with huge volume.
On the indicator front, weekly RSI is about to enter the 70 zone, along with weekly DMI (directional movement index), which has turned positive, thus looking lucrative.
Thus, we advise traders to go long in the stock in the range of Rs 305-310, with a stop-loss of Rs 275 and target of Rs 365.
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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