Stocks to buy: VTL and Divislab among top choices, Here’s why
Indian stock market: The Nifty has encountered difficulty surpassing the resistance range of 19850-19900. On the downside, 19700 has held as a near-term support level. As long as there’s no breakout, the index is expected to continue moving sideways. A decline below 19700 could potentially trigger a market correction. Conversely, a clear move above 19900 might prompt a significant rally, potentially driving the index towards a new all-time high.
Bank Nifty
Following RBI’s tightening measures, the Bank Nifty has consolidated at lower levels, with four of the five largest banks dropping below their 200DMA. The sentiment appears sideways in the short term. The level of 44000 is poised to remain a pivotal point; a decisive move above this mark could potentially trigger a substantial rally for the index. On the downside, visible support resides around 43500.
Stocks to Buy
VTL | Recommendation: Buy | CMP: ₹418 | Target: ₹450 | Stop Loss: ₹408
The stock exhibits a strong bullish outlook, marking a consolidation breakout on the weekly chart. It consistently trades above its crucial moving average, as well as the 21 and 14 days moving averages, reinforcing positive momentum. With an RSI of 67 on the weekly chart, momentum strength is evident. Consider initiating a long position in the 418-422 range, setting a stop loss at 408, and targeting an upside of 450.
DIVISLAB | Recommendation: Buy | CMP: ₹3760 | Target: ₹3860/3930 | Stop Loss: ₹3690
The stock is currently experiencing a breakout with a Cup & Handle pattern on the daily chart, and this breakout is supported by an increase in trading volume, suggesting positive momentum in the stock. On the weekly chart, there is a formation of the Three White Soldiers positive candlestick pattern. On the higher end the stock might reach 3860 to 3930. To manage risk, it’s recommended to maintain a stop-loss at 3690 on a closing basis.
GRANULES | Recommendation: Buy
Granules has exhibited a flag pattern breakout on the daily chart, indicating a potential increase in optimism. Moreover, the stock found support at the 21EMA before the recent rally. The surge in volume has substantiated the latest rally. The potential upside seems to be around 430, with support placed at 377.
The author, Rupak De is 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
Milestone Alert!Livemint tops charts as the fastest growing news website in the world ???? Click here to know more.
Download The Mint News App to get Daily Market Updates.
Updated: 26 Nov 2023, 01:53 PM IST
