Indian Stock Market:The Indian market saw another day of consolidation on Tuesday, with traders cautious ahead of the Federal Reserve’s upcoming monetary policy meeting. On Wednesday, the Fed is expected to announce its first rate cut since 2020.
He 50 elegant The S&P BSE Sensex closed the session up 0.14 per cent at 25,418 points, just 27 points away from its all-time high of 25,445 points, which it came close to during the day. The S&P BSE Sensex index, on the other hand, registered a gain of 0.11 per cent and closed at 83,079 points, marking a new high.
“Domestic benchmarks opened on a positive note, in line with global cues. The Nifty started the day on a flat to positive note and traded within a narrow range throughout the day. As a result, the index closed the day on a marginally positive note at 25,419.
“Technically, the daily scale index formed a doji candlestick near its all-time high, indicating some short-term hesitation. However, the fact that Nifty held above 25,335 (the breakout level of the rounding bottom pattern) suggests underlying strength. The 21-DEMA support is currently located near 25,060, which will act as the next major support for the index. As long as Nifty holds above 25,060, a ‘buy on dips’ strategy is advisable, with the potential for the index to test 25,600 in the near term.
Nifty Bank “Bank Nifty index started the day on a positive note but failed to sustain higher levels leading to consolidation within a narrow range. As a result, the index closed the day on a marginal positive note at 52,189. Technically, the index held above the cup and handle breakout level of 51,750, indicating potential strength. Therefore, 51,700-51,750 zone will act as immediate support for Bank Nifty in the near term. If the index holds the 51,700 support, it could test 52,800-53,000 levels in the near term,” said Hrishikesh Yedve, Executive Vice President – Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.
Brokerage firm Motilal Oswal has recommended three stocks – JK Cement, Havells India and Unilever Hindustan – buy this week on a decent bullish move.
Stocks to buy
JK Cement: Buy at ₹4,766 | Target price: ₹5,150 | Stop Loss: ₹4.550
JK Cement is trading in the territory of all-time highs and gave a cup and handle breakout on weekly scale which is a bullish price pattern and the formation of higher lows of the past four weeks. On daily scale, the stock retested the previous zone and formed a strong bullish candle with a good surge in volumes. The momentum indicator, Relative Strength Index, is also moving northwards on weekly scale indicating overall strength in the stock. Good buying is seen in the cement stock which may support the ongoing bullish move. Therefore, looking at the overall chart structure, we recommend buying the stock keeping the stop loss below 4550 levels on closing for a fresh all-time high target towards 5150 zones.
Havells India: Buy at ₹1.988 | Target price: ₹2,120 | Stop Loss: ₹1.920
The stock is trading in the territory of all-time highs and gave a consolidation breakout on a weekly scale after fourteen weeks with a strong bullish candle. On a daily scale, the higher lows structure is intact from the last few sessions and gave the highest weekly close. The stock is holding well above its 20DEMA and the RSI is giving a bullish crossover indicating that the momentum will pick up in the upcoming sessions. Therefore, looking at the overall chart structure, we recommend buying the stock keeping the stop loss below 1920 levels on closing for a fresh all-time high target towards 2120 zones.
Hindustan Unilever: Buy on ₹2,932 | Target price: ₹3,120 | Stop Loss: ₹2.840
Behind Unilever The stock price broke out massively on monthly scale after thirty-six months and formed a strong bullish candle. On daily scale too, the stock is moving higher and the base of the stock is moving higher. Good buying is seen in the FMCG sector and the stock is likely to perform better in the coming sessions. It is trading above its short term moving averages and looking at the overall setup, the stock is likely to hit fresh highs in the coming sessions. Therefore, we recommend buying the stock keeping the stop loss below 2840 levels on closing for a fresh all-time high target towards 3120 zones.
Disclaimer: The opinions and recommendations offered in this analysis are those of individual analysts or brokerage firms, not those of Mint. We strongly recommend that investors consult with certified experts before making any investment decisions as market conditions can change quickly and individual circumstances may vary.
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