Indian stock market: The Nifty has continued to rise as it closed above the upper band of the rising channel, showing buoyant sentiment. So far, 24200 has acted as significant support. The trend might remain strong as long as it remains above 24200. Only a decisive drop below 24200 might take the index towards 24000-23950. However, given the resilience of the current bullishness, the index might continue to rise in the short term. A decisive move above 24400 might induce a rally towards 24600/24800.
Bank Nifty
Bank Nifty ended with a marginal gain at the end of a volatile week. The volatility was led by movements in HDFC Bank, which has a dinosaur weight in the Bank Nifty. The index managed to close above the critical short-term moving average and above the short-term breakout point, indicating a positive setup. The overall sentiment might favor the bulls as long as it remains above 52000. On the higher end, a sustained trade above 52750 might put the index back on a high growth path.
Stocks to buy
BHEL: Buy at ₹316 | Target price: ₹340 | Stop loss: ₹304
The stock has given a falling trendline breakout, suggesting a rise in optimism. The trend looks positive as the index has sustained above the 50 EMA on the daily timeframe. Additionally, a hidden positive divergence is visible on the daily RSI, indicating strong momentum in the current bullish phase. On the higher end, the stock might move towards 340. On the lower end, support is placed at 304.
CDSL: Buy at On dips around ₹2250 | Target price: ₹2600 | Stop loss: ₹2100
CDSL has been in a sideways consolidation after a sharp up-move. This is very common when a stock is getting ready for a bigger rally. The strength may remain in the stock until it falls below the 50 EMA (currently pegged around 2100). Therefore, CDSL might remain buy on dips with a stop loss of 2100. On the upside, the stock might move towards 2600 in the short term.
Borosil: ₹500-515 | Target price: ₹580 | Stop loss: ₹484
After finding support at the 200 SMA on the weekly timeframe, the stock has been in recovery mode. The strength in price is backed by rising volume. The weekly RSI is in a bullish crossover and rising. In the short term, the trend might remain positive, with the potential to reach 580. Support is placed at 484.
The author is Rupak De is the Senior Technical Analyst, 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.
