Stocks to Buy: Why you should bet on Tata Power and IndusInd bank for short term
The Nifty displayed strength, primarily driven by strong demand for large-cap stocks. The overall trend remained robust as the index consistently stayed above a critical moving average. However, a significant hurdle for the Nifty came in the form of substantial Call writing at the 19900 strike price. Looking ahead, only a decisive move above the 19900 level has the potential to propel the index towards the 20200 mark. On the flip side, there was substantial Put writing at the 19700 level, providing strong support for the Nifty.
The Bank Nifty index witnessed a strong bullish momentum as the bulls took full control. Following the breakthrough of the resistance level at 44,650, there was a sharp rally of 600 points. The next significant hurdle on the upside is situated at 45,500, where the highest open interest is concentrated. The index maintains a “buy on dip” mode, with robust support seen at the 44,800 levels, underlining the bullish sentiment in the market.
IndusInd Bank| Buy 1447| Target 1550| SL 1414
IndusInd Bank’s stock is showing promising signs on the daily chart, with a closing above its resistance level. It is also trading above its 50-day moving average, suggesting strength. The Relative Strength Index (RSI) at 61 indicates momentum building. Traders may consider a long position with a stop-loss between 1414 and a target of 1500/1550 on the upside.
Tata Power| Buy 269| Target 300| SL 255
Tata Power is on an impressive run, showing multiple breakouts on the daily chart, accompanied by strong delivery volume. It’s outpacing its peers in the power sector, maintaining a position above both the 50-day and 200-day moving averages. With a robust RSI at 76, signaling strong momentum, a long position in the range of 263-270, with a stop loss at 255, appears favorable, targeting a potential upside of 300.
Author of the article, Kunal Shah, is the Senior Technical & Derivative analyst at LKP Securities.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 10 Sep 2023, 02:17 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.