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Expert bets on these 2 stocks for short term
The Nifty 50 has formed a bearish engulfing pattern on the daily chart, indicating a potential pause in the ongoing rally. The momentum indicator RSI (relative strength index) shows a bearish crossover, signalling weakness in the near term. The Nifty was down 142 points at 22,055.
Immediate support for the benchmark is seen at 22,000 and a decisive drop below this level could lead the index towards 21,700. On the upside, the resistance is identified at 22,160.
The Bank Nifty index experienced a volatile trading session during the weekly expiry and encountered resistance around 47,300 levels. The index is stuck in a broad range of 46,500-47,500 and faces limitations on further upside until it surpasses the 47,300 mark.
The immediate support stands at 46,800, and a breach below this level could intensify selling pressure, potentially pushing the index towards 46,500.
Here are two buy calls and one sell recommendation for short term:
Gujarat State Petronet: Buy | LTP: Rs 374 | Stop-Loss: Rs 358 | Target: Rs 388/396 | Return: 6 percent
The stock is exhibiting a strong uptrend pattern with higher highs and higher lows, supported by its recent bounce off the 38 percent Fibonacci level and the 20-day moving average.
The RSI approaching a bullish crossover signals a potential long entry opportunity. Consider initiating positions between Rs 368-372, with a stop-loss at Rs 358, targeting gains at Rs 388 and Rs 396.
Nestle India: Buy | LTP: Rs 2,544 | Stop-Loss: Rs 2,470 | Target: Rs 2,680/2,750 | Return: 8 percent
The stock has established a consolidation base, notably at the 61.8 percent Fibonacci support level, accompanied by a bullish Three White Soldiers candlestick pattern.
Sustained trading above the 20-day EMA (exponential moving average) further reinforces bullish sentiment. With RSI nearing a bullish crossover, it presents an opportune moment to initiate a long position, targeting gains in the range of Rs 2,680-2,750, with a stop-loss at Rs 2,470.
Coromandel International: Sell | LTP: Rs 1,085 | Stop-Loss: Rs 1,121 | Target: Rs 1,040/1,020 | Return: 6 percent
The stock has closed at its lowest point in the last few days. On the higher end, it has encountered resistance at the 21-day exponential moving average (21EMA).
The momentum indicator RSI is on the verge of a bearish crossover. On the lower end, there is a possibility of a decline towards the range of Rs 1,040-1,020. Resistance on the higher end is identified at Rs 1,121.
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