Why RITES and Bharat Forge look attractive
The Nifty index has successfully broken above the important resistance level of 18,800, indicating a bullish sign. Additionally, writers of call options at 18,800 strike have been observed covering their positions, suggesting a positive sentiment as the Nifty sustains its position above 18,800. The moving averages are below the current index value, which further supports the bullish outlook. Furthermore, the momentum indicator has given a falling trend line breakout, indicating a potential increase in upward momentum.
As long as the Nifty remains above the support level of 17,700, the overall trend is expected to remain positive. However, the resistance level is anticipated at 19,000, which may present a challenge for further upward movement.
The bulls regained control and displayed strength in the Bank Nifty index. The index managed to hold the support level at 43,400, which suggests that buying pressure emerged at that level. Immediate Upside Resistance at 44,000: The index faces immediate resistance at 44,000. A successful break above this level could open up room for further upside moves. Potential Upside Targets for the index, if it breaks above the resistance at 44,000, can move towards the 43,300/43,500 levels.
Financial Nifty, the index started on June 16 with a gap-up opening. Strong positive moves in HDFC, SBI, and HDFC BANK contributed to the index maintaining its positive momentum throughout the day. Major indexes NIFTY and BANK NIFTY closed positive, FIN NIFTY closed above the previous day’s high, indicating a strong positive sentiment for the upcoming days. The major resistance zone for the index is at 19,600/19,660. On the downside, key support levels can be found at 19,400/19,300.
The stock experienced a breakout on the daily chart, accompanied by a sharp surge in volumes. This indicates a strong upward move in the stock. The momentum indicator RSI showed a buy crossover, suggesting increasing buying pressure and strength in the stock. The stock has a support level at ₹380, which is expected to provide a cushion for any potential downside movements. The stock has a potential upside target of ₹430 to ₹450, indicating the possibility of further price appreciation.
The shares of BHARATFORG have shown positive signs in their price action and technical indicators. The stock is currently sustaining above the double bottom breakout level, which indicates strength in the upward movement. RSI has undergone a bullish crossover, indicating increasing buying momentum. Additionally, the stock is maintaining its position above the 21-day Exponential Moving Average (EMA), further supporting the bullish outlook. In the short term, the stock is expected to move towards the ₹900-920. On the downside, a support level is identified at 800, which may act as a price floor during potential corrections.
The authour, 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.
Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Download The Mint News App to get Daily Market Updates.
Updated: 18 Jun 2023, 07:29 AM IST
