Indian Stock Market: Nifty surpassed the 22,000 mark during the first half of the Friday session but subsequently formed a double top on the hourly chart. Confirmation of a bullish trend resumption would only occur with a decisive breakout above the double top, which is currently identified around 22,125. Conversely, a break below the support level at 21,500 could indicate a bearish momentum. In the scenario of a breakout above 22,150, Nifty may experience upward momentum, potentially reaching levels such as 22,500 and beyond.
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Bank Nifty
The Bank Nifty bears regained control as the index failed to surpass the crucial level of 46500 on a closing basis. The immediate support for the index is situated at 47700, and a breach below this level is anticipated to intensify selling pressure, potentially pushing the index towards the 45000 mark. Given the heightened volatility in the near term, traders are advised to approach the market with caution and implement strict risk management measures to navigate potential fluctuations.
Stocks to Buy
GAIL | Recommendation: Buy | CMP: ₹178.25 | Target: ₹190 | Stop Loss: ₹174
On the daily chart, the stock has experienced a consolidation breakout, indicating increased optimism. Additionally, the stock has surpassed the critical moving average on the daily chart. Furthermore, the price rise was supported by an increase in volume. In the short term, the stock may move towards 190. On the downside, support is situated at 174.
NMDC | Recommendation: Buy | CMP: ₹236 | Target: ₹250/260 | Stop Loss: ₹226
The stock exhibits a bullish trend with a clear higher high and higher low formation on the chart, indicating an upward trajectory. In today’s session, the stock convincingly broke its resistance at 226. The RSI signaled a double bottom breakout, currently in a bullish crossover with placement at 70. Considering these factors, initiating a long position in the stock within the range of 236-232, with a stop loss at 226, seems viable for an upside target of 250/260.
BHEL | Recommendation: Buy | CMP: ₹233.40 | Target: ₹250 | Stop Loss: ₹224
On the daily chart, the stock has given a consolidation breakout, indicating increased optimism. In addition, the stock has surpassed the critical moving average on the daily chart. Furthermore, the price rise was supported by an increase in volume. In the short term, the stock may move towards 250. On the downside, support is situated at 224.
The author, Kunal Shah is Senior Technical & Derivative Analyst at LKP Securities.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 04 Feb 2024, 02:49 PM IST
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