Stocks to buy: Fortis, Dr. Reddy among top picks, here's why
Indian stock market: The Nifty index is showing signs of near-term bearishness as it forms a double top pattern on the daily chart, coupled with a bearish engulfing candle. This suggests a sell-on-rise approach in the market. Confirmation of the double top pattern would require follow-up selling in the upcoming week.
Immediate resistance is noted at the 22,600-22,700 zone, where aggressive call writing has been observed in the options market. On the downside, the index has immediate support at 22,300, and a breach below this level could accelerate the downside momentum. The BankNifty index faced selling pressure from higher levels but maintained its uptrend, closing near the immediate support of 49,000.
Immediate resistance is at 49,200, and a break above could trigger short-covering moves towards 49,500 levels. Conversely, immediate support lies at 48,800-48,700, and a breach might lead to further downside towards the 48,400 mark, where the 20DMA is situated. The stock exhibits a promising setup: a breakout from a descending trendline on the daily chart, accompanied by a bullish candlestick.
It maintains a position above its 21-day moving average, indicating short-term strength. The Relative Strength Index (RSI) has also shown a bullish crossover, residing at 60. The stock continues to exhibit a robust uptrend, maintaining higher highs and higher lows on the daily chart.
Trading above its short-term moving average of 20DMA at 438, it acts as a cushion against declines. In the previous trading session, volume-based buying was observed, supported by a positive crossover in the momentum indicator RSI, confirming a buy signal. The stock has recently experienced a significant breakout on the daily chart, breaking free from
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