Here's why Hindalco and ICICI Bank seem attractive short-term bets
Nifty index's break above the consolidation range of 19,300-19,500 suggests increasing optimism in the market. The resistance at 19,500, which was heavily built by Call writers, has been surpassed on a closing basis. This breakthrough is expected to lead to a significant rally as the Call writers unwind their positions.
The bullish crossover on the momentum indicator RSI reinforces the upward momentum. Meanwhile, the Bank Nifty is facing significant resistance at 45,000, hindering its upward movement. As long as it remains below this level, a clear directional up move is unlikely.
Support is established at 44,700 on the lower end. The bullish crossover on the momentum indicator RSI suggests positive momentum. Going forward, the index may continue to consolidate with the bands of 44500-45000; any decisive breakout on either side may create a directional trend.
On the sectoral front, technology stocks have experienced a remarkable rally, resulting in a bullish breakout for the Nifty IT index. This surge in prices has pushed the index above a critical moving average, signalling a positive trend. The bullish crossover on the momentum indicator RSI further confirms the upward momentum.
Based on these factors, it is recommended to maintain investments in tech stocks for the short term, as they are expected to continue their upward movement in the coming days. Buy Hindalco | CMP: ₹446 | Target: ₹500 | Stop Loss: ₹424 Hindalco has recently broken out of a falling trendline, suggesting a rise in optimism. The weekly chart also shows a bullish Marubozu candle at the closing.
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