Indian stock market: Nifty witnessed two days of recovery following a doji formation on the daily chart, indicating a bullish reversal. Moreover, the Nifty has reclaimed the critical 55-day exponential moving average. However, Nifty needs to cross over 22,100 to witness a clear rally towards the all-time high of 22,525. On the lower end, 22,950 might remain a strong support for the index. Below this level, the index might enter a consolidation phase.
Bank Nifty
Meanwhile, the BankNifty experienced strong buying activity from lower levels, yet faced challenges in surpassing the resistance at 47,000. Immediate support is identified at 46,600-46,500. As long as the index maintains above this level, the outlook remains bullish. A breakthrough above 47,000 is expected to initiate sharp short-covering rallies towards the 48,000 level.
Stocks to buy
Axis Bank: Buy at ₹1031 | Target: ₹1140 | Stop Loss: ₹1098
The stock has been finding support at the critical 200DMA on the daily chart following a sharp correction. Additionally, it has been finding support around the previous swing low on the daily chart. Over the short term, the stock might witness a recovery towards the higher end, and as long as it remains above the 200DMA, the chances of a strong recovery will persist. On the upside, it might move towards 1,140 in the short term. Support on the downside is placed at 1,000.
Indus Tower: Buy at ₹275 | Target: ₹300 | Stop Loss: ₹267
The stock has experienced a swing high breakout on the daily chart. Additionally, it has sustained above the critical short-term moving average. The momentum indicator is also indicating positive momentum. On the upside, it might move towards 300 in the short term. Support on the downside is placed at 267.
PCBL: Buy at ₹262 | Target: ₹285 | Stop Loss: ₹252
The stock has given consolidation breakout on the daily chart. The recent rise in price was backed by increased volume. The momentum indicator is also indicating positive momentum. On the upside, it might move towards 285 in the short term. Support on the downside is placed at 252.
The author, Rupak De, is Senior Technical Analyst at LKP Securities.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 24 Mar 2024, 05:07 PM IST