Adani Power, HCL Tech look attractive for short term. Here’s why
On August 11, aside from the first hour, the Nifty remained predominantly rangebound, with the benchmark index slipping below 19,500. However, it did not experience a significant correction as traders chose to stay on the sidelines due to the upcoming holidays. From a technical standpoint, the Nifty continues to exhibit a bearish trend as it remains below the 21-day Exponential Moving Average (21-EMA). The Relative Strength Index (RSI) is also indicating a bearish crossover. In the short term, there’s a possibility that the index might decline towards the 19300 level. On the upside, there’s a resistance level situated at 19500.
Bank Nifty
The Bank Nifty index is currently dominated by bears, as evidenced by the breach of the crucial support level at 44,400 on a closing basis. The prevailing sentiment seems to lean towards selling on rallies, with an immediate resistance level observed around 44500.Looking ahead, the index’s next significant support is positioned at 43700, which might serve as a buying zone for the bulls, potentially triggering a bounce back.
Adani Power | Recommendation: Buy | CMP: ₹288 | Target: ₹316 | Stop Loss: ₹274
Adani Power has recently experienced a consolidation breakout on its daily chart, indicating a surge in positive sentiment. Furthermore, a bullish crossover is evident on the daily Relative Strength Index (RSI). Notably, the stock’s price has consistently traded above the crucial near-term moving average. In the short term, there’s a potential for the stock to ascend towards the 300 level and possibly beyond. On the downside, a support level can be identified at 274.
HCL Tech | Recommendation: Buy | CMP: ₹1,168 | Target: ₹1,280 | Stop Loss: ₹1,134
HCL Tech is displaying positive trends, a significant breakout has occurred on the daily chart, accompanied by a notable surge in trading volumes. This breakout suggests the potential for further upward movement. The stock’s breakout from a falling trendline confirms a trend reversal, indicating a shift from bearish to bullish sentiment. HCL Tech has a support level at ₹1,135, which may act as a cushion for any downward movements. Meanwhile, the stock has the potential to reach an upside target of ₹1,280.
The author, Rupak De is senior technical analyst at LKP Securities
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 13 Aug 2023, 10:33 AM IST
