Indian stock market: The Nifty faced difficulty in breaking above the resistance range of 19850-19900. On the downside, 19700 held as a short-term support level. As long as there is no breakout, the index is expected to continue to move sideways. A decline below 19700 could potentially trigger a market correction. Conversely, a clear move above 19900 could trigger a significant rally, possibly leading the index to a new all-time high.
Bank Nifty
Following RBI’s tightening measures, the Bank Nifty consolidated at lower levels, with four of the five largest banks falling below their 200DMA. The feeling appears sideways soon. The level of 44000 is set to remain a pivotal point; a decisive move above this mark could potentially trigger a large rally for the index. On the downside, visible support resides around 43500.
Stocks to Buy
VTL | Recommendation: Buy | CMP: ₹418 Purpose: ₹450 | Stop Loss: ₹408
The stock is showing a strong bullish outlook, marking a consolidation breakout on the weekly chart. It is consistently trading above its crucial moving average, as well as the 21- and 14-day moving averages, reinforcing positive momentum. With an RSI of 67 on the weekly chart, momentum strength is evident. Consider starting a long position in the 418-422 range, setting a stop loss at 408, and aiming for an increase from 450.
DIVISLAB | Recommendation: Buy | CMP: ₹3760 | Purpose: ₹3860/3930 | Stop Loss: ₹3690
The stock is currently experiencing a breakout with a Cup & Handle pattern on the daily chart, and this breakout is supported by increasing trading volume, suggesting positive momentum in the stock. On the weekly chart, there is a formation of the positive Three White Soldiers candlestick pattern. On the higher end the stock could reach 3860 to 3930. To manage risk, it is recommended to keep a stop-loss at 3690 on a closing basis.
GRANULES | Recommendation: Buy
Grains exhibited a flag pattern in the daily chart, indicating a possible increase in optimism. Moreover, the stock found support at the 21EMA before the recent rally. The increase in volume proved the last rally. The potential top appears to be around 430, with support placed at 377.
The author, Rupak De is a Senior Technical Analyst at LKP papers
Disclaimer: The opinions and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions
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Updated: 26 Nov 2023, 13:53 IST