The Nifty index spot was locked in a 200-point range, making it a quiet week for local markets. In the absence of a big trigger, the index closed flat, bouncing between 19,870 and 19,670.
Technically, little changed last week (ending November 24), as the Nifty remained rangebound. As a result, we continue to believe that the outlook is to purchase on dips.
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Given how swiftly the index has risen to about 1,000 points, the recent retreat looks to be nothing more than a time-based correction. In the case of some profit-taking, 19,500-19,400 might provide early support for the current week. If the index goes over 19,900, there is a probability of a lengthy ascent, leading to a new lifetime high.
Even the Nifty Bank index has been extremely flat over the previous week. Only a rise above the swing high of 44,420 in the next weeks will strengthen the index and initiate a fresh uptrend.
On the downside, immediate support is around 43,000, and a break of this level might push the index down to 42,000. For markets to stay positive, the Nifty Bank index must rise. Further index underperformance might lead to a shift in momentum in favor of the bears.
2 Buy Calls For Short Term:
Tata Teleservices (Maharashtra): Buy | LTP: Rs 89 | SL: Rs 78 | TP: Rs 105 | ROI: 18%
Since reaching a peak at Rs 110 on September 15, 2023, it has corrected nearly 25%. At this point, it has found support at the 200-day exponential average, or Rs 85, which is also the last swing high.
The daily RSI has formed an impulsive structure in the oversold zone of 30, which appears profitable on the indicator. On a daily close basis, one might purchase in the region of Rs 86-90 with a target of Rs 105 and a stop-loss of Rs 78.
Chambal Fertilisers and Chemicals: Buy | LTP: Rs 308.65 | SL: Rs 275 | TP: Rs 365 | ROI: 18%
Chambal Fertilisers have been stabilizing on the weekly chart for some time. It recently experienced a large volume breakout.
On the indicator front, the weekly RSI (directional movement index) is set to approach the 70 zone, as is the weekly DMI (directional movement index), which has become positive and so appears profitable.
As a result, we suggest traders go long in the stock in the Rs 305-310 region, with a stop-loss of Rs 275 and a target of Rs 365.
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