Adani Power, HCL Tech look attractive for short term. Here's why
Nifty remained predominantly rangebound, with the benchmark index slipping below 19,500. However, it did not experience a significant correction as traders chose to stay on the sidelines due to the upcoming holidays. From a technical standpoint, the Nifty continues to exhibit a bearish trend as it remains below the 21-day Exponential Moving Average (21-EMA).
The Relative Strength Index (RSI) is also indicating a bearish crossover. In the short term, there's a possibility that the index might decline towards the 19300 level. On the upside, there's a resistance level situated at 19500.
The Bank Nifty index is currently dominated by bears, as evidenced by the breach of the crucial support level at 44,400 on a closing basis. The prevailing sentiment seems to lean towards selling on rallies, with an immediate resistance level observed around 44500.Looking ahead, the index's next significant support is positioned at 43700, which might serve as a buying zone for the bulls, potentially triggering a bounce back. Adani Power has recently experienced a consolidation breakout on its daily chart, indicating a surge in positive sentiment.
Furthermore, a bullish crossover is evident on the daily Relative Strength Index (RSI). Notably, the stock's price has consistently traded above the crucial near-term moving average. In the short term, there's a potential for the stock to ascend towards the 300 level and possibly beyond.
On the downside, a support level can be identified at 274. HCL Tech is displaying positive trends, a significant breakout has occurred on the daily chart, accompanied by a notable surge in trading volumes. This breakout suggests the potential for further upward movement.
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