Nifty ended the month of September with gains, following a weak August closing. The recent selling pressure was halted around the 50EMA. However, we need to close above 19,750 to witness a decent rally over the short term. A close or sustained move above 19,750 might take Nifty on a ride towards 20,500-20,700. On the flip side, a fall below 19,470 might trigger the resumption of the downtrend.
The Bank Nifty saw a resurgence in bullish momentum as the bulls successfully defended the key support level at 44,200. However, challenges persist as the 20-day moving average (20DMA) at 45,000 continues to act as a strong resistance.The index appears to be consolidating within a range, with levels of 44,200 on the downside and 45,000 on the upside defining this range. A decisive break on either side of this range will likely trigger fresh trending moves. In particular, the support at 44,200 is crucial and could determine the index’s near-term direction.
Sell| M&M| CMP: 1554| TGT 1485/1460| SL 1600
M&M has undergone a sharp correction subsequent to the formation of a doji pattern on the daily chart. The RSI is currently in a bearish crossover and is declining. In the short term, it is possible that the stock may decline to levels around 1,485-1,460. On the upper side, resistance is notable at the 1,600 level.
Buy| L&TFH| CMP 133| TGT 145/150| SL 125
L&T Finance Holdings (L&TFH) is showing signs of a potential bullish breakout after a period of consolidation, as it approaches the resistance of a falling trendline.The momentum indicator, RSI, has provided a positive crossover, signaling a potential reversal in the stock’s direction.Crucially, there is visible support at the 125 level, which is expected to act as a cushion for the bulls. If this support holds, it may pave the way for a move towards upside targets of 145 and 150.
The author is Rupak De, Senior Technical 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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Updated: 01 Oct 2023, 03:34 PM IST