Stocks to Buy: Why Tata Steel and Wipro look attractive for short term
Nifty has started the September series on a bullish note, as the index has moved above the 21EMA for the first time in several days. This suggests the potential for a bullish reversal. Additionally, the index has broken out of a falling channel, further indicating increasing bullish sentiment. Looking at the higher end of the spectrum, there is now a resistance level at 19,530 points. If the Nifty manages to breach this resistance, it could signal a continuation of the uptrend. On the lower end, there is strong support at 19,340 points.
Bulls have regained strength and successfully defended the crucial support zone of 44,000 – 43,800. This area also witnesses fresh put writing, indicating strong support.The next immediate hurdle for the index is positioned at 44,500. A successful breakout above this level is likely to trigger a fresh upward movement.The overall sentiment and undertone in the Bank Nifty Index remain bullish, as long as the mentioned support levels of 44,000 – 43,800 are held on a closing basis.
Wipro
Wipro‘s daily chart shows the formation of a symmetrical triangle pattern, indicating a period of consolidation. This pattern is accompanied by lower trading volumes, suggesting a potential breakout in the near future.The momentum indicator RSI (Relative Strength Index) has given a positive crossover, confirming a buy signal. This suggests that bullish momentum may be building in the stock.A significant support level is observed at 405, indicating that this level has held as a floor for the stock’s price. If the stock experiences a pullback, this level may act as a cushion.The potential upside target for Wipro could be in the range of 450 to 470, implying the possibility of a substantial price increase if the symmetrical triangle pattern results in a bullish breakout.
Tata Steel
TATASTEEL concluded the trading session at its highest point in several days, suggesting a surge in positive sentiment among traders. Additionally, the stock has consistently remained above a significant moving average, signifying its strength. The Relative Strength Index (RSI) is exhibiting a bullish crossover pattern. In the near term, there is a potential for the stock to advance towards the 137/140 mark. Conversely, on the downside, a support level is established at 120.
The author, Kunal Shah, is a Senior Technical & Derivative 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: 03 Sep 2023, 02:29 PM IST
