The Nifty index exhibited significant strength, securing a notable breakout on the daily chart as it surpassed the key resistance level of 21,800. This bullish move positions the index for potential short-term targets of 22,000 and 22,200. Traders are advised to consider buying opportunities on any dips toward the support level. The momentum indicator RSI has also provided a buy crossover, further confirming the bullish sentiment in the market.
Bank Nifty
The Bank Nifty index displayed strength by overcoming the initial hurdle at 47,500, signaling potential upward movement towards the next resistance level at 48,000. A decisive breach of 48,000 is crucial, as it could trigger substantial short covering, propelling the index towards the 50,000 mark. The lower support is evident at 47,000, a level marked by significant put writing.
Stocks to buy
1.Bank of India | Recommendation: Buy | CMP: ₹128-123 | Target: ₹145/150 | Stop Loss: ₹115
Bank of India has exhibited a robust breakout on the daily chart, accompanied by a significant surge in volumes. The momentum indicator, RSI, has confirmed the bullish momentum with a positive crossover. The lower-end support is evident at 115, providing a cushion for the bulls. Anticipating further upward movement, the potential upside targets for Bank of India are set at 145 and 150.
2.L&T | Recommendation: Buy | CMP: ₹3,560-3,530 | Target: ₹3,800/4,000 | Stop Loss: ₹3,450
Larsen & Toubro (L&T) is poised for a breakout from an upward consolidation range, consistently finding support at its 20DMA. The momentum indicator RSI has recently turned positive with a crossover, confirming the bullish momentum. A visible lower-end support at 3,450 acts as a foundation for potential bullish movements. Considering these factors, the stock holds potential upside targets of 3,800 and 4,000.
3.Sonata Software | Recommendation: Buy | CMP: ₹750 | Target: ₹800/820 | Stop Loss: ₹720
Sonata Software is currently in a robust uptrend, showcasing higher highs and higher lows on the daily chart. The stock recently witnessed a breakout with increased volumes from its 20-day moving average, affirming the bullish momentum. The positive crossover in the momentum indicator RSI further confirms the buy signal. The lower-end support is identified at 720, providing a cushion for the bulls.
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: 14 Jan 2024, 08:47 PM IST