The Nifty 50 index has embarked on an upward trajectory since last Tuesday. However, the ascent has been moderate, lacking significant impetus from fresh positive triggers in the market. With the conclusion of Q3 earnings on a positive note, market attention now pivots towards macroeconomic indicators and global news developments.
Examining the technical aspects, the Nifty has formed a bullish candle with a notable lower shadow on the weekly chart. Analysts at Axis Securities suggest that a breakthrough and sustained performance above the 22,150 mark could instigate buying momentum, propelling the index towards the 22,300-22,400 levels. Conversely, a breach below the 21,800 threshold may trigger selling pressure, driving the index towards 21,600-21,500 levels.
According to analysts, although the weekly strength indicator RSI remains flat, indicating a lack of significant strength, the momentum oscillator Stochastic has transitioned positively from the oversold territory, hinting at a potential uptrend in the near future.
For the upcoming week, analysts anticipate the Nifty 50 to oscillate within the range of 22,400-21,500 with a mixed bias, reflecting the uncertainty prevailing in the market sentiment.
L&T has experienced a notable correction from its recent peak around ₹3,740. Following a brief consolidation phase, with support near the crucial 100-period MA (moving average) of ₹3,250, the stock has demonstrated a rebound, accompanied by a positive candle formation on the daily chart, enhancing the bullish sentiment. The RSI has also retraced from the overbought region, positioning itself favorably to signal a buy with indications of a potential trend reversal.
SJVN witnessed a robust uptrend over the last month, undergoing a substantial correction from its peak level of ₹170 before finding support in the ₹102-104 range. A bullish candle formation surpassing the 50EMA level of ₹109 has further strengthened the outlook, hinting at a probable upsurge in the forthcoming sessions.
Maintaining a robust upward trajectory, Bharat Dynamics experienced a significant decline before stabilizing near ₹1,560 and consolidating around the critical 50EMA level of ₹1,605. A succession of positive candle formations has bolstered the outlook, signaling further potential growth. With the RSI indicating a promising trend reversal, analysts anticipate a sustained upward movement with an initial target of ₹1,900, while recommending a stop loss at ₹1,630.
HDFC Bank reached its peak around ₹1,721 on December 28, 2023, before witnessing a significant decline of approximately 358 points (21 percent). In recent weeks, the stock has traded within a narrow range of ₹1,380 to ₹1,480, indicative of market indecision. The daily scale stochastics indicator identified a “regular bull divergence” near a 1.13 harmonic ratio, suggesting potential upward momentum despite recent declines and signaling a possible bullish reversal in the near future.
MMTC exhibited a significant technical development, forming an inverse head and shoulders pattern on the monthly scale within the price range of ₹65-75 levels. This pattern, characterized by three troughs with the middle one lower than the others, often signifies a bullish reversal. Additionally, the monthly Stochastic oscillator, a momentum indicator, has reversed direction from the 50 level, suggesting a shift from bearish to bullish momentum. Analysts recommend initiating long positions in MMTC within the range of ₹70-80, with a target set at ₹110, and implementing a stop-loss strategy at ₹58 on a daily closing basis to manage risk.
In conclusion, the current market landscape presents opportunities for strategic investments in fundamentally sound stocks, as recommended by industry experts. As investors navigate through the evolving market conditions, careful analysis and informed decision-making are paramount for achieving sustainable growth and optimizing investment portfolios.
