The bullish trend in the market seems to have weakened with the benchmark Nifty index falling below its 21-day EMA (exponential moving average). The index may now find short-term support in the 21,930-22,030 levels, where the previous congestion took place.
Conversely, failure to maintain support at 21,930 could exacerbate panic in the market. On the higher end, resistance for the short term is seen at 22,400.
The Bank Nifty index, after a shaky start, witnessed a recovery in the latter half of the session and managed to close above its 20-day moving average (20DMA) of 47,500.
If the index sustains above the 47,500-47,400 range, it could experience a pullback towards the 48,000 level. However, a break below 47,300 on a closing basis might trigger further selling pressure, potentially driving the index down towards the 46,500 level.
Here are three buy calls for short term:
Saregama India: Buy | LTP: Rs 413 | Stop-Loss: Rs 370 | Target: Rs 460/500 | Return: 11 percent
The stock has developed a strong base on the weekly chart, with recent dips being purchased aggressively, evident from high trading volumes. It is on the brink of a breakout from a daily chart perspective, challenging a significant resistance zone at Rs 426.
Additionally, the momentum indicator RSI (relative strength index) has surpassed the 60 mark, indicating an acceleration of momentum in the near term. This points towards a potentially bullish phase if the stock successfully breaks past the resistance.
Samvardhana Motherson International: Buy | LTP: Rs 124 | Stop-Loss: Rs 118 | Target: Rs 130/140 | Return: 13 percent
The stock has exhibited a strong breakout on the daily chart, accompanied by a sharp increase in volumes, indicating robust buying interest. It has consistently found support at its 20-day moving average, currently at Rs 118, which has served as a reliable cushion.
Additionally, the momentum indicator RSI is nearing a breakout from a falling trendline, suggesting that momentum could accelerate in the near term. This combination of factors points to a potentially bullish scenario for the stock.
Radico Khaitan: Buy | LTP: Rs 1,756 | Stop-Loss: Rs 1,670 | Target: Rs 1,850/1,960 | Return: 12 percent
The stock is poised for a breakout following a significant consolidation phase, highlighted by volume-based buying from lower levels. It has demonstrated resilience by rebounding multiple times from its 20-day moving average, positioned at Rs 1,682, signaling strong support from bulls at these levels.
The momentum indicator RSI is currently challenging a resistance level at 65; a breach above this could lead to a rapid ascent towards the targeted levels, indicating a potentially strong upward movement in the stock's price.
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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