Stocks to buy: Fincalbes and Petronet among top choices, here's why

livemint.com:

Indian stock market: The Nifty has made a notable advance above 22,500, following a sustained movement beyond 22,100. Moreover, there's a visible consolidation breakout on the daily timeframe, indicating an increase in optimism. However, the Nifty faced initial resistance around its previous swing high of 22,526.

Therefore, for a further rally, it needs to move decisively beyond 22,525. On the lower end, 22,200 might act as support for the short term. After a period of bullish resurgence, the Bank Nifty index exhibited strength by surpassing the 20-day moving average hurdle set at 47,000, backed by significant volumes.

Despite this, it faced resistance around the 47,500 mark. A decisive breach above this resistance could propel the index towards the 48,000 level. Conversely, the immediate support is situated at the 47,000-46,800 zone.

A conclusive drop below this support level, especially on a closing basis, might indicate a false breakout scenario. The stock has recently demonstrated a significant technical breakthrough, forming a double bottom pattern on the chart, accompanied by a notable surge in trading volumes. Additionally, it has convincingly surpassed key moving averages (20, 50, 100 EMA) with strong volume support, signaling a robust breach of resistance levels and a potential change in trend direction.

Furthermore, the momentum oscillator RSI has sharply rebounded from the oversold territory, indicating a notable shift in momentum towards the bullish side. In terms of support, the stock has a firm base around the 900-880 zone, serving as a cushion for bullish sentiment. As for potential upside targets, they are projected in the range of 1065-1120.