Indian Stock Market Remains Range-Bound Despite Global Market Sentiment
Despite strong global market sentiment on a possible US Fed rate cut buzz, the Indian stock market remained range-bound on Thursday last week. The Nifty 50 index added 19 points and closed at 22,493 level, the BSE Sensex went up 33 points and ended at 74,119 mark whereas the Bank Nifty index finished 129 points lower at 47,865 level. However, the broad market witnessed buying interest as the small-cap index went up 0.70 percent while the mid-cap index shot up 0.39 percent.
Sumeet Bagadia, Executive Director at Choice Broking, believes that the Nifty 50 index touched a new peak of 22,525 despite high volatility on Dalal Street. The Choice Broking expert went on to add that strong buying in the Tata group stocks worked as an aide for the 50-stock climbing to a new peak on the last session of the truncated week. On stocks to buy on Monday, Sumeet Bagadia recommended three buy or sell stocks for Monday — Chambal Fertilisers, BEL, and Hindustan Unilever Ltd (HUL).
Chambal Fertilisers: Buy at ₹372.75, target ₹400, stop loss ₹350
Chambal Fertilisers share price, currently trading at ₹372.75 levels, has demonstrated noteworthy technical strength. The stock’s bounce from crucial support levels and subsequent breach of the initial resistance at ₹360, aligned with the 20-day and 50-day Exponential Moving Averages (EMA), signals a positive momentum. Notably, Chambal Fertilisers share price is trading above all significant moving averages, affirming its robust technical position. The momentum indicator, Relative Strength Index (RSI), positioned at 58.30, adds further credence to the stock’s strength.
In the immediate term, a modest resistance level is observed around ₹384. A sustained breach above this level is anticipated to propel the stock towards the target of ₹400 and beyond. This comprehensive analysis underscores Chambal Fertilisers shares’ favourable technical setup, emphasizing support levels, moving averages, and momentum indicators for informed decision-making by investors and traders.
Based on the above technical analysis, we advise purchasing Chambal Fertilisers shares at CMP of ₹372.75. It can also be added in dips at ₹360 for the target of ₹400 with a stop loss of ₹350.
BEL: Buy at ₹215.40, target ₹234, stop loss ₹205
BEL share price, currently trading at an all-time high of ₹215.40, has recently broken out of its range by forming a new higher high and higher low, indicating a strong uptrend. The current price is exhibiting robust bullish momentum, expected to continue towards the ₹234 level. On the flip side, there is substantial support near ₹205.6.
Moreover, BEL share is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, signifying robust bullish momentum and suggesting potential for further upward price movement. The Relative Strength Index (RSI) is presently at 77.8, showing an upward trajectory and indicating increasing buying momentum.
Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively suggest that BEL share price may have the potential to reach target prices of ₹234 in the near term. A prudent strategy would be to consider buying on dips at levels of ₹210.
Overall, considering the technical analysis and current market conditions, BEL share presents a promising buying opportunity for those aiming for a ₹234 price target, provided that prudent risk management measures are in place.
HUL: Buy at ₹2419.55, target ₹2575, stop loss ₹2350
HUL share price is presently trading at ₹2419.55 levels, showcasing resilient technical dynamics. The stock’s recent rebound from the crucial support at ₹2350 has been a pivotal development. Having surpassed the initial resistance at 2410, proximate to its 20-day Exponential Moving Average (EMA), the stock exhibits positive momentum.
While encountering a minor resistance around ₹2345, aligned with its 50-day EMA, a breakout above this level is anticipated to propel the stock towards the target of ₹2575 levels. This forward-looking analysis considers the stock’s support levels, moving averages, and the positive signal conveyed by the Relative Strength Index (RSI), presently trading at 49.32, indicative of underlying strength.
Investors and traders may find merit in closely monitoring the stock for potential opportunities, taking into account the identified support and resistance levels, as well as momentum indicators, to make informed decisions in the dynamic market scenario.
Based on the above technical analysis, we advise purchasing HUL shares at CMP of ₹2419.55. It can also be added in dips at ₹2390 for the target of ₹2575 with a stop loss of ₹2350.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
