Indian stock market: The Nifty has given a consolidation breakout on the daily chart, driven by a strong technical breakout in IT giants. The sentiment looks positive from here, as the indicators and popular overlays indicate a continuation of strength. Support is visible at 24,400, where significant short buildup has been seen by the put writers. The buy-on-dips strategy should favor the street until Nifty falls below 24,400. On the higher end, the current rally might extend towards 24,800.
Bank Nifty
The Bank Nifty remained volatile throughout the day before closing flat. Sentiment might continue to favor the bulls, as the index appears to have found support at the 21 EMA on the daily timeframe on Thursday. The buy-on-dips strategy looks best from the current perspective until it falls below 21,700. On the higher end, resistance is visible at 52,800; above 52,800, the index might continue its upward journey towards 54,000.
Stocks to buy
Indian Bank: Buy at ₹559 | Target Price: ₹600 | Stop Loss: ₹542
After the consolidation breakout on the daily timeframe, the stock looks promising for the short term. The price has been sustaining above the critical moving average. The RSI is in a bullish crossover and rising. On the higher end, the stock might move towards 600, while support is placed at 542.
Birlasoft: Buy at ₹731 | Target Price: ₹800 | Stop Loss: ₹700
The stock has given a downward consolidation breakout on the daily chart. The trend remains positive as it has been sustaining above the critical moving average. The daily RSI is in a bullish crossover. On the higher end, the stock might move towards 800, while support is placed at 700.
IRFC: Buy at ₹216.50 | Target Price: ₹230 | Stop Loss: ₹208
The stock has finally moved up after a consolidation breakout on the daily chart. The trend remains positive as it has been sustaining above critical moving average. daily RSI is in bullish crossover. On the higher end, the stock might move towards 230; while support is placed at 208.
The author Rupak De is the Senior Technical Analyst at LKP Securities.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, 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.
