Stocks to buy: IRCTC and ITC among top bets, here’s why
Indian stock market: The Nifty has once again closed below the rising trendline, bringing market sentiment back into a state of weakness. The momentum indicator suggests bearish momentum in the near term. Immediate support is situated at the 50DMA, currently at 21,900, which is expected to provide support for the Nifty. A decisive drop below 21,900 could lead to a sharp decline in the index. On the upside, resistance is observed in the range of 22,200-22,250.
Bank Nifty
The BankNifty index witnessed a volatile trading session, forming a doji candle that signals indecision in the market. Immediate resistance for the BankNifty index lies at 47000, coinciding with the 20-day moving average (20DMA). A decisive break above this level could propel the index higher towards the 47500 mark. On the flip side, the lower end support is positioned at 46500-46300, where bulls are currently attempting to defend. However, a breach below this level may intensify selling pressure in the market.
Stocks to buy
IRCTC: Buy at ₹900-890 | Target: ₹950/1000 | Stop Loss: ₹860
The stock has historically found robust support at the 860 levels, with the current correction reaffirming this strong demand zone. Additionally, the momentum indicator RSI has signaled a positive crossover from the oversold territory, confirming a buy signal. The stock is currently in a buy-on-dip mode, with an immediate target of 950. Sustained trading above this level could propel it higher towards the 1000 mark.
Bharti Airtel: Buy at ₹900-890 | Target: ₹1260 | Stop Loss: ₹1174
The stock has defied the overall market trend by remaining above the critical moving average. Additionally, it has sustained its position above the recent consolidation level. The RSI indicates a positive crossover. Over the short term, the stock may continue its upward trajectory with the potential to reach towards 1250-1260. Support on the lower end is situated at 1174.
ITC: Buy at ₹420 | Target: ₹460 | Stop Loss: ₹400
The stock has experienced a consolidation breakout after forming a base on the daily timeframe. The recent increase was supported by a rise in volume. Furthermore, the stock has moved above the near-term moving average. Additionally, a positive divergence is evident in the RSI, indicating a bullish shift in price momentum. In the short term, the stock may continue its upward movement with the potential to reach towards 460. Support on the lower end is situated at 400.
The author Rupak De, is the Senior Technical Analyst at LKP Securities.
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.
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Published: 17 Mar 2024, 02:08 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.