Stocks to Buy: Here’s why Tata Motors and Jamna Auto are looking attractive
Indian Stock Market: The bulls were able to protect the level of 19,600 during the day, thanks to the strong open interest (OI) build-up at the 19,600 strike price by put writers. The strength may continue as long as the index remains above 19,600. Only a decisive fall below 19,600 might trigger serious long unwinding in the market, till then a buy on dips strategy to favour the market. On the higher end, resistance is visible at 19,850; above 19850, the index might move towards 20,000.
Bank Nifty
In the Bank Nifty index, the ongoing battle between the bulls and bears continued. Resistance is established at the 44,700 mark, while the support lies at 44,000. The overall market sentiment remains bullish as long as the critical support at 44,000 holds, and a breach below this level, confirmed by a closing basis, may lead to renewed selling pressure. On the upside, a substantial resistance level is placed at 45,000, and a breakout beyond this point is likely to trigger significant short-covering.
Stocks to Buy
Jamna Auto | Recommendation: Buy | CMP: ₹120 | Target: ₹128 | Stop Loss: ₹117
Jamna Auto share price has experienced a downward consolidation breakout on the daily chart. Furthermore, it has been maintaining a position above the critical moving average. The RSI is indicating a bullish crossover. In the short term, the stock may potentially move towards 128, with support at 117.
Tata Motors | Recommendation: Buy | CMP: ₹660 | Target: ₹700-720 | Stop Loss: ₹630
Tata Motors share price has experienced a fresh breakout from a sideways consolidation pattern, marked by a sharp increase in volumes on both smaller and larger time frames, confirming its bullish undertone. It has found support at the 20DMA and rebounded strongly, with this level now acting as support for the bulls. Additionally, the momentum indicator RSI has surpassed the level of 60, reinforcing the buy signal.
RITES | Recommendation: Buy | CMP: ₹495 | Target: ₹540-550 | Stop Loss: ₹470
RITES share price has demonstrated a sharp reversal on the daily chart with a significant increase in volumes, indicating bullish activity at the support levels. The momentum indicator RSI has given a positive crossover on the daily chart, confirming a buy signal. Key support for the stock is at 470, acting as a cushion for the bulls. Upside potential targets are 540 and 555.
The author, Rupak De is 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: 15 Oct 2023, 07:51 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.