The Nifty index has formed a doji candle on the daily chart, indicating an uncertain situation and a battle between the bulls and the bears is emerging. Downside support for Nifty 50 is seen in the 19,000-18,900 range, with fresh writing visible for the upcoming weekly expiry. The immediate resistance is located at the 19,200 level, and a breakthrough at this point could trigger fresh short covering, which could drive the index towards 19,300-19,350.
Bank Nifty
The daily chart of Bank Nifty reveals an uncertain doji candle formation, indicating uncertainty in the Index. The index failed to close above its critical 200-day Simple Moving Average (SMA) at 43,200, suggesting strong resistance at this level. To consider a long position in Bank Nifty, it is advisable to wait for a sustained advance above the 200-day SMA, which could indicate a possible uptrend.
1) PURCHASE OF L&T FINANCIAL HOLDING AG ₹140-136 | SL: ₹130 | GOAL: ₹150/152
RATIONALE: L&T Finance Holdings shows promising signs for potential investors. It recently closed near a strong resistance level, indicating a potential breakout. Moreover, it is trading above the 20-day moving average, which confirms short-term bullish sentiment. An increase in trading volume indicates an increase in market interest. With an RSI at 61, indicating plenty of momentum, the stock appears to be well positioned. Consider initiating a long position in the 136-140 range, setting a stop-loss at 130 for downside protection, and aiming for a 152 target.
2) BUY GODREJ CONSUMER PRODUCTS FOR Rs 1,020-1,000 | SL: Rs 960 | TARGET: Rs 1,100-1,170
RATIONALE: Godrej Consumer Products (GODREJCP) stock has broken out of a downtrend on the charts, supported by a sharp rise in trading volume. The RSI momentum indicator rebounded strongly from oversold territory, indicating renewed strength. Additionally, the stock is above the 200-day moving average (200DMA) located at 988, which confirms a change in trend. With support seen at 960, acting as a cushion for the bulls, the stock presents potential upside targets in the 1,100 to 1,170 range.
3) Buy ARVIND Fashion AT Rs 340 | SL: ₹300 | GOAL: ₹450/600
RATIONALE: Arvind Fashion stock has established a strong base at lower levels. It is consolidating within a wide range between 265 and 380 and currently there are signs that a significant move is imminent. The stock continues to be in “float buy” mode, with support at 300, and the potential for upside targets of 450 and 600.
The author, Kunal Shah, is a Senior Technical & Derivatives analyst at LKP Securities
Disclaimer: The opinions and recommendations made above are the opinions of individual analysts or brokerage firms, and are not the opinions of Mint. We encourage investors to check with certified experts before making any investment decision
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Updated: 05 November 2023, 11:34 AM IST
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