Rajat Boserajatkbose.com
The Nifty is clearly in a bullish mode. The most critical zone in today’s session is located between 10484 and 10515, so long as this potential strong support zone is held the bullish momentum would be operating. A stay above the 10560-mark would signal real strength. However, the real test of the recovery swing would be seen between 10653 and 10736. This range getting taken out would tell us that a probable retest of the all-time-high of 11171-mark.
That being said, we would do well to remember that any failure to decisively take out 10653 through 10736 would make it clear that this upswing is just a pullback after a protracted fall that lasted for about three weeks. We are well set for a crucial test today.
Bank Nifty:
The price movement in the Bnak Nifty in the last session seems to suggest that a reversal of the short-term downtrend might have already taken place. However, it would still be a bit premature to think. So far it has not cleared some significant resistance levels. Such resistance zones are found first between 25242 and 25512. This is the initial supply zone that the index needs to take out decisively, and once it does that this zone would become a base or key support levels where pullbacks would most likely get their floor.
Going further up, the most important zone is between 25752 and 25814. Once this is taken out (as and when that happens), the current short-term downtrend would be considered terminated.
The gap between 26215 and 26364 needs to be taken out to finally to embark on a fresh vibrant uptrend. Going by the price movement, unless you see the index falling below 25130 and closing its bullish overtone would remain intact, and it is expected to scale up further ground in today’s session.
Below are the top stocks which can give handsome returns in the near term:
Jet Airways: Rating: Buy | Target: Rs 779-793 | Stop loss: Rs 754
Buy the stock with a stop loss below Rs 754; targets are Rs 779 and Rs 793. Jet Airways has already tested the critical support zone between Rs 740 and Rs 730 and has also seen short-term moving averages giving bullish crossover. Thus, it is likely to give at least a decent pullback to retest Rs 790 – 800 zone.
Larsen & Toubro: Rating: Buy | Target: Rs 1364 – 1370 | Stop loss: Rs 1325
Larsen & Toubro is backed by short-term moving averages giving a similar bullish crossovers, and a downtrend-line breakout. Prior to that it tested the key moving average the 89-day EMA. Even if the current upswing is just a pullback, the earlier resistance zone between Rs 1364 and Rs 1370 is most likely going to be retested.
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