Nifty recovered from the day’s lows on Monday to end with minor gains lifted by buying trends in IT and pharma stocks though selling in banks, auto and metals dragged the markets. The index witnessed a sharp recovery during the day after forming a harmonic pattern on the lower timeframe charts.
Rupak De, Senior Technical Analyst at LKP Securities said the index is now facing resistance near the 61.8% Fibonacci retracement level of the previous decline, which is placed around 23,650. "A decisive move above 23,650 could trigger a short-term rally towards 24,000 and higher levels. On the downside, immediate support is placed near 23,400. Stock-specific buying interest continues to remain visible, indicating selective strength in the broader market. However, sustained elevation in India VIX above 18.50 is likely to keep optimism in check and may continue to induce volatility in the near term" De said.
Here are 2 stocks to buy:
Buy PB Fintech at Rs 1,749 | Upside: 8%
Stop Loss: Rs 1,680
Target: Rs 1,890
PB Fintech (Policybazaar) has shown a strong bullish recovery after rebounding sharply from lower levels and reclaiming its key short- and medium-term moving averages. The stock is currently witnessing a breakout above the recent consolidation zone near 1,700, indicating renewed buying interest and strengthening momentum. RSI is sustaining above the 70 mark, reflecting positive momentum and continued accumulation despite entering the overbought territory. Price action also suggests the formation of higher highs and higher lows, which supports the ongoing uptrend structure.
(Kunal Kamble, Sr. Technical Research Analyst, at Bonanza Portfolio)
Buy GE Shipping at Rs 1,700 | Upside: 12%
Stop Loss: Rs 1,598
Target: Rs 1,900
Great Eastern Shipping has delivered a decisive breakout above the long-term resistance zone near 1,550, supported by a sharp surge in volumes and strong bullish price action. The stock is trading firmly above all major moving averages, indicating a well-established uptrend and sustained buying interest. RSI has moved above the 70 mark, reflecting strong momentum and continued accumulation despite entering the overbought territory. The breakout from the prolonged consolidation range signals a potential continuation of the broader upward trend. Technically, the stock appears well positioned to move toward the 1,800–1,900 zones in the near term, while immediate support is placed around Rs 1,520–1,550 on any decline.
(Kunal Kamble, Sr. Technical Research Analyst, at Bonanza Portfolio)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
