The Nifty 50 concluded the February 5 trading session at 22,356.30 after opening weak but later recovering to some extent to close with a modest decline of 0.22 percent. Notably, the Nifty had crucial support at 22,200, which was further solidified by the 20-day simple moving average (SMA). The relative strength index (RSI) has settled comfortably at 61, indicating that the index was stable.
However, caution is advised as certain sectors appear to be overbought, potentially prompting profit-booking and impacting mid and small-cap equities.
The Bank Nifty closed at 47,581, up 0.26 percent, with the 20-day EMA (exponential moving average) providing strong support at 46,900 level, while resistance is placed at 48,100. Notably, private-sector banking stocks are showing relative strength and have a mixed-to-positive outlook.
Here are three buy calls for short term:
TVS Motor Company: Buy | LTP: Rs 2,280.9 | Stop-Loss: Rs 2,185 | Target: Rs 2,450 | Return: 7.4 percent
The stock is forming higher highs and higher lows indicating a sustained uptrend. It is trading above its key moving averages. The stock is placed well above its short-term (20 day) and medium-term (50 day) moving averages suggesting bulls are in total control.
Moreover, the RSI comfortably holding at 68 levels, is gradually inching higher indicating strength in the stock.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 2,281 for a target price of Rs 2,450. The stop-loss can be kept at Rs 2,185.
Aditya Birla Capital: Buy | LTP: Rs 192 | Stop-Loss: Rs 180 | Target: Rs 212 | Return: 10 percent
The stock reveals a strong recovery after a notable consolidation, forming a sturdy base supporting a rising trendline. The stock is currently trading above the 20 SMA indicating positive momentum. The daily chart reveals, volume is ticking up with price rise. The RSI is gradually inching higher suggesting indicates bullishness in stock.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 192 for a target price of Rs 212. The stop-loss can be kept at Rs 180.
Hindustan Petroleum Corporation: Buy | LTP: Rs 528 | Stop-Loss: Rs 508 | Target: Rs 565 | Return: 7 percent
The stock (HPCL) is rising after establishing strong support at the 23.6 percent Fibonacci retracement at Rs 505. The volume has fallen in these consolidations; however, if the stock crosses the Rs 530-535 a minor resistance zone, it may rise further.
The stock is trading above the 20 and 50 SMA. The MACD (moving average convergence divergence) indicator points towards a positive crossover, while the RSI remains at 63 level.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 526 for a target price of Rs 565. The stop-loss can be kept at Rs 508.
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