Stocks to Buy: Here’s why BEML and Gail India are short-term buys
The Nifty faced a downturn from it’s all-time high as tech stocks plummeted due to Infosys’ disappointing revenue guidance. Additionally, investors chose to stay cautious before quarterly results from big boys like Reliance Industries and ICICI Bank. A crucial support level for the Nifty lies at 19,700, marked by significant put writing. Should the index breach this level, it may lead to a substantial market correction. On the upside, resistance is positioned at 20,000.
Meanwhile, the index, Bank Nifty, experienced a volatile trading session with both buying and selling pressure seen from market participants on both ends. This volatility indicates indecision in the market, and traders are closely monitoring the price movements. The options data suggests that the market may remain range-bound as there is significant options selling observed at the at-the-money (ATM) strikes. Options sellers often anticipate that the market will remain within a specific range during a certain period. The lower end support for BANK Nifty is placed at 45,900. If the index falls towards this level and holds, it may act as a support, preventing further downside. On the other hand, the upside resistance is visible at the 46,350-46,400 levels. If the index manages to surpass this resistance area, it could signal further upward movement.
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BEML | Recommendation: Buy | Target: ₹1,800 | Stop Loss: ₹1,634
BEML recently experienced a consolidation breakout on its daily charts and has managed to remain above a crucial moving average. Additionally, the RSI indicator is showing a bullish crossover. However, there appears to be resistance at the ₹1,800-level, while support can be seen at ₹1,634.
GAIL | Recommendation: Buy | Target: ₹118 | Stop Loss: ₹108
Gail India has witnessed strong buying interest around the level of 106, which is acting as a support for the stock. This level has held firm in the past, indicating potential demand from buyers at this price. The stock is currently approaching a falling trendline, and a breakout above this trendline could accelerate the stock’s momentum in the upward direction. Additionally, a morning star pattern has formed at the support level, further confirming the bullish structure.
The author is Rupak De, Senior Technical analyst at LKP Securities
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 23 Jul 2023, 06:18 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.