Indian stock market: The Nifty has made a notable advance above 22,500, following a sustained movement beyond 22,100. Moreover, there’s a visible consolidation breakout on the daily timeframe, indicating an increase in optimism. However, the Nifty faced initial resistance around its previous swing high of 22,526. Therefore, for a further rally, it needs to move decisively beyond 22,525. On the lower end, 22,200 might act as support for the short term.
Bank Nifty
After a period of bullish resurgence, the Bank Nifty index exhibited strength by surpassing the 20-day moving average hurdle set at 47,000, backed by significant volumes. Despite this, it faced resistance around the 47,500 mark. A decisive breach above this resistance could propel the index towards the 48,000 level. Conversely, the immediate support is situated at the 47,000-46,800 zone. A conclusive drop below this support level, especially on a closing basis, might indicate a false breakout scenario.
Stocks to buy
Fincalbes: Buy at ₹960-940 | Target: ₹1065/1120 | Stop Loss: ₹880
The stock has recently demonstrated a significant technical breakthrough, forming a double bottom pattern on the chart, accompanied by a notable surge in trading volumes. Additionally, it has convincingly surpassed key moving averages (20, 50, 100 EMA) with strong volume support, signaling a robust breach of resistance levels and a potential change in trend direction. Furthermore, the momentum oscillator RSI has sharply rebounded from the oversold territory, indicating a notable shift in momentum towards the bullish side. In terms of support, the stock has a firm base around the 900-880 zone, serving as a cushion for bullish sentiment. As for potential upside targets, they are projected in the range of 1065-1120.
Petronet: Buy at ₹266-262 | Target: ₹285/300 | Stop Loss: ₹250
The stock has recently exhibited a bullish reversal pattern, forming a double bottom formation on the daily chart along with a morning star pattern, indicating a robust reversal signal. Additionally, the momentum indicator RSI has confirmed the bullish sentiment by providing a positive crossover and is poised for a breakout from a falling trendline, which could further accelerate the bullish momentum. In terms of support, the stock has a strong base around the 250 level, serving as a cushion for bullish investors. Looking ahead, potential upside targets are projected in the range of 285 to 300.
Maha Bank: Buy at ₹62 | Target: ₹285/300 | Stop Loss: ₹68/70
The stock has recently experienced a significant breakout, forming a double bottom pattern on the daily chart, accompanied by a notable surge in trading volumes. This breakout is further supported by a positive crossover observed on the daily chart’s momentum indicator, the RSI, indicating a bullish momentum shift. Additionally, the stock has surpassed its 20-day moving average (20DMA) with increased volumes and is now approaching a breakout from a falling trendline. A key support level is identified at 58, expected to provide a cushion for bullish movements. The stock’s potential upside targets are set at 68 and 70.
The author, is Kunal Shah, Senior Technical & Derivative 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: 31 Mar 2024, 05:24 PM IST