Indian Stock Market: Nifty opened higher but failed to sustain the morning momentum, leading to a closing at the day’s low due to profit booking. However, the sentiment remained positive for the short term as the index closed above the crucial resistance level of 22,200, with the next resistance seen at 22,400. Short-term support is positioned at 21,900. As long as Nifty maintains levels above 21,900, the index may continue to be considered a buy on dips.
Bank Nifty
The Bank Nifty index maintained its robust momentum, breaking past the 46,500 level, which is now established as a formidable support. Any retracement towards this support zone presents an ideal opportunity to initiate long positions, targeting an upside of 48,000. The immediate hurdle for the index is situated at 47,100, and a conclusive break above this level would signify a resumption of the uptrend toward the mentioned targets of 48,000.
Stocks to Buy
IRCTC | Recommendation: Buy | CMP: ₹960 | Target: ₹1020/1070 | Stop Loss: ₹910
RATIONALE: IRCTC stock has recently experienced a significant breakout on the daily chart, accompanied by a notable surge in volumes. The stock successfully surpassed its 20-day moving average (20DMA) with strong volume support, signaling robust momentum. Additionally, the momentum indicator has provided a positive crossover, further confirming the bullish outlook for the stock.
Indiabulls Housing Finance | Recommendation: Buy | CMP: ₹205-200 | Target: ₹240/250 | Stop Loss: ₹185
RATIONALE: IBULHSGFIN has recently experienced a robust breakout on the daily chart, marked by a sharp surge in volumes, particularly from a falling trendline. The stock is currently trading above its critical short-term moving averages, affirming a bullish undertone in its trend. Furthermore, the momentum indicator, RSI, has turned from the oversold territory, indicating the resumption of a new upward trend.
JSW Energy | Recommendation: Buy | CMP: ₹505 | Target: ₹550/570 | Stop Loss: ₹480
RATIONALE: The stock is currently in consolidation within a broad range and shows signs of an imminent breakout on the daily chart. The momentum indicator, RSI, has provided a positive crossover, confirming a buy signal. Additionally, there is visible lower-end support at 480, acting as a cushion for the bulls. The stock has the potential to reach upside targets at 550/570 once the breakout is confirmed.
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: 25 Feb 2024, 02:05 PM IST