The Indian stock market, specifically the Nifty, has seen a slight decline recently, indicating a short-term negative sentiment. However, there’s a strong support level at 22500, suggesting that a significant market correction is unlikely as long as it stays above this level. If it maintains above 22500, it could even go up to 22650-22700 again. On the other hand, dropping below 22500 might lead to a 200-250 point correction.
For the Bank Nifty index, there’s been a notable selling pressure, signaling a return of bearish momentum. It’s struggling to break through the 49,000 mark, and only a clear breakthrough above this level could push it towards 50,000. The index has a support level at 48,000, which needs to hold to avoid further selling pressure.
Stock Recommendations:
- UTI Asset Management Company Ltd: Buy at ₹920 | Target: ₹1000/1060 | Stop Loss: ₹880
This stock is showing positive signals, with a bullish flag pattern formation on the daily chart, suggesting a potential breakout. It’s consistently bouncing off its short-term moving averages (20DMA and 50DMA), indicating strong support around 880. The target range for this stock is between 1000 and 1060.
- Samvardhan Motherson: Buy at ₹155 | Target: ₹170/185 | Stop Loss: ₹140
There are indications of a bullish breakout in Samvardhan Motherson stock, with a bullish diamond pattern formation on the daily chart. Increased trading volumes in recent days suggest growing buyer interest. The momentum indicator RSI supports this bullish momentum, indicating a positive outlook in the short term.
- SAIL: Buy at ₹155 | Target: ₹170/185 | Stop Loss: ₹140
SAIL stock is displaying a strong bullish trend, with a rounding bottom formation on the weekly chart and a breakout above the previous 20-week high. It’s been consistently trading in higher highs, indicating an uptrend. The momentum indicator RSI is above 60, confirming bullish momentum. Support is seen at 140, making dips buying opportunities. Targets for the stock are set at 170 and 185.
The author, Kunal Shah, is a Senior Technical & Derivative Analyst at LKP Securities.
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