Indian stock market: On the daily chart, the index has broken down from the rising channel, indicating a rise in bearish sentiment. The trend is likely to remain weak in the near term, with resistance noted at 22,200. As long as the Nifty remains below this level, a strategy of selling on rallies may be favorable for traders. Support at the lower end is situated at 21,950 on a sustained basis; a decisive drop below this level could trigger panic in the market.
Bank Nifty
Meanwhile, the Bank Nifty index remained under the control of bears, encountering resistance at elevated levels. Immediate resistance for the Bank Nifty stands at 48,000, coinciding with the highest open interest on the call side. A breakthrough above this level could trigger fresh short-covering moves. On the downside, the index finds support at 47,050, represented by the 100-day exponential moving average (EMA). Sustaining above this level may pave the way for potential pullback moves in the index.
Stocks to buy
Indus Tower: Buy at ₹333 | Target Price: ₹354 | Stop Loss: ₹322
The stock has moved up after forming a base on the hourly chart. The recent positive move was preceded by a sharp correction in the price. The hourly RSI (14) has exited the oversold zone. Over the short term, the stock might move towards 354. Support is placed at 322.
EIH Hotels: Buy at ₹488 | Target Price: ₹520 | Stop Loss: ₹469
The stock has risen after two days of consolidation on the daily timeframe, indicating an increase in bullish sentiment. It has sustained above the critical moving average 21EMA. The hourly RSI (14) shows a bullish crossover. The trend appears bullish in the short term. Over this period, the stock might move towards 520, with support positioned at 469.
Bata India: Buy at ₹1310 | Target Price: ₹1450 | Stop Loss: ₹1259
RATIONALE: On the daily chart, a bullish harami pattern has formed after prolonged correction on the daily chart, suggesting a strong possibility of bullish reversal. The daily RSI is in positive divergence with the price and has exited the oversold zone. The current technical set up says that the stock might recover over the short term. Over this period, the stock might move towards 1450, with support positioned at 1259.
The author Rupak De, is Senior Technical Analyst at LKP Securities.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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Published: 12 May 2024, 03:14 PM IST