Stocks to buy: City Union Bank and Deepak Nitrate among top choices, here's why
Indian stock market: The Nifty remained under selling pressure throughout the session as the index failed to sustain above the crucial level of 22500. On the daily chart, a dark cloud cover pattern is observed, indicating a potential bearish reversal. Immediate support is situated at 22300, below which the Nifty could extend its losses towards 22000.
On the other hand, the level of 22500 might act as a technical resistance for the Nifty. Despite facing selling pressure from higher levels, the BankNifty index managed to defend the crucial support at 48000. The bullish sentiment persists as long as it remains above this level, where significant open interest is concentrated on the put side.
Currently, the immediate hurdle lies at 48600, and a decisive breakthrough above this level could pave the way for new all-time highs in the index. The stock has experienced a significant breakout on the daily chart, characterized by a sharp surge in trading volumes, emerging from a sideways consolidation pattern. This breakout is further supported by a positive crossover observed on the daily chart's momentum indicator, the RSI, signaling a buy opportunity.
Additionally, the stock is currently trading above its short-term moving average of 20DMA, reinforcing the bullish sentiment in the market. The stock is poised for a breakout from a rounding bottom formation observed on the weekly chart, indicating a potential bullish trend reversal. This sentiment is further supported by the momentum indicator RSI, which has recently given a positive crossover and surpassed the key level of 60, confirming the bullish momentum.
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