The Nifty has successfully broken out of its consolidation phase, closing above the significant resistance at 19,875. The potential for a further rally towards the 20,150-20,220 levels is now evident.
Notably, the immediate and robust support level stands at 19,800, providing a solid foundation, with 19,600 acting as a pivotal base for any potential pullback.
In case of Bank Nifty, a notable uptrend is seen after a bounce off the 200-day moving average (DMA). The key resistance lies at the 100-DMA of 44,400.
A breakthrough above 44,400 could trigger a substantial short-covering rally. Conversely, the 20-DMA at 43,600 serves as a crucial support level on the downside, reinforcing a bullish sentiment in the market.
Here are three buy calls for short term:
Orissa Minerals Development Company: Buy | LTP: Rs 7,621 | Stop-Loss: Rs 7,000 | Target: Rs 8,694 | Return: 14 percent
The counter sees multiple bullish setups where we have a breakout of triangle formation on the daily chart along with a breakout of a flag pattern formation on the weekly chart with strong volume. The structure of the counter looks lucrative in the longer time frame, and it is also trading above all its important moving averages.
Most of the momentum indicators are positively poised and support the breakout move in this counter. On the upside, if Rs 8,000 is an immediate hurdle, then we can expect a move towards Rs 8,600-plus. On the downside, Rs 7,000 will act as a strong demand zone.
Confidence Petroleum: Buy | LTP: Rs 100 | Stop-Loss: Rs 93 | Target: Rs 112 | Return: 12 percent
It has witnessed a breakout of an inverse head-and-shoulders formation on the daily chart with strong volume. It is bottoming out from the 200-DMA at around Rs 70.
The weekly chart exhibits the formation of higher tops and higher bottoms. Additionally, the stock is displaying superior performance compared to benchmark indices, including the momentum indicator. The MACD (moving average convergence divergence) is in a positive position, indicating the potential for upward momentum.
The structure of the counter looks lucrative, as it is trading above all its important moving averages.
On the upside, Rs 105 is the important psychological resistance level, above which we can expect the Rs 110 levels in the near term, while on the downside, Rs 93 is the support level, below which we can expect Rs 210 levels.
Vedant Fashions: Buy | LTP: Rs 1,406 | Stop-Loss: Rs 1,300 | Target: Rs 1,600 | Return: 14 percent
The counter is in a classical uptrend where it has broken a symmetrical triangle formation on the longer time frame after building a strong base at its 200-DMA.
On an immediate basis, Rs 1,450 is the horizontal resistance line; above this, we can expect a rally towards Rs 1,600 levels.
On the downside, Rs 1,300 is an immediate and strong support. Momentum indicators are positively poised to support the current strength of the trend.
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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