By Kunal Shah, senior technical & derivative analyst at LKP Securities
Prior to the FOMC meeting, the Nifty50 faced selling pressure from higher levels but successfully held the 18,940 support levels. The immediate resistance on the upside is identified at 19,100, and a breakout above this level may trigger short-covering moves toward the 19,250-19,300 range.
Conversely, if the lower-end support at 18,940 is breached on a closing basis, it could intensify selling pressure, potentially pushing the index to new lows.
The Bank Nifty index formed a Doji candlestick pattern, suggesting a state of indecision at the current levels, with a battle between bulls and bears. Immediate resistance is observed at 43,000, where significant open interest is concentrated on the Call side. A breach above this level could trigger short-covering moves towards 43,500.
Conversely, the lower-end support is positioned at 42,400, and if it is breached on a closing basis, it may escalate the selling pressure.
Here are three buy calls for short term:
Karur Vysya Bank: Buy | LTP: Rs 148 | Stop-Loss: Rs 142 | Target: Rs 154-158 | Return: 7 percent
Karur Vysya Bank is currently displaying some promising signals as the stock appears to be on the verge of a breakout. It recently rebounded from a robust support level with substantial trading volume, hinting at strong buying interest.
Furthermore, the stock is trading above its crucial moving averages, reinforcing a positive trend. The relative strength index (RSI) at 65 suggests good momentum.
For short-term traders, it may be an opportune time to consider a long position at the current market price, with a prudent stop-loss at Rs 142, and aiming for short-term targets of Rs 154-158 on the upside.
Birlasoft: Buy | LTP: Rs 574 | Stop-Loss: Rs 550 | Target: Rs 600-615 | Return: 7 percent
Birlasoft recently displayed some promising signals on its daily chart. Firstly, it broke out of a consolidation phase, suggesting potential upward momentum. Secondly, it closed above its crucial moving average, signifying a positive trend.
Additionally, the relative strength index (RSI) for the stock currently stands at 71, indicating strong momentum. These indicators suggest a favourable outlook.
One can go long on the stock on a pull back in the price range of Rs 568-575, with a stop-loss of Rs 550 for the short term targets of Rs 600-615.
Indian Oil Corporation: Buy | LTP: Rs 92 | Stop-Loss: Rs 86 | Target: Rs 99-103 | Return: 11 percent
IOC (Indian Oil Corporation) stock has demonstrated a sharp recovery, supported by volume-based buying at lower levels. The stock has given a breakout from a falling trendline, which could significantly boost its momentum.
The RSI momentum indicator has also provided a positive crossover, confirming a buy signal. In terms of levels, there is visible support at Rs 86, which serves as a safety net for the bulls. Additionally, the stock presents potential upside targets at Rs 99 and 103, indicating a positive outlook for IOC.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
