Stocks to Buy: Here's why Motherson and India Cements are top bets for short-term
Indian stock market: During the week, the Nifty witnessed a spectacular rally following a swing high breakout on the daily chart. This suggests a rise in optimism among market participants. However, the Nifty consolidated in the later part of the week.
Going forward, 21000 is likely to act as a crucial level for the Nifty as call writers have built their maximum positions at that strike price. A resumption of the current uptrend might be seen above 21000, with the potential to reach towards 21550. On the lower end, put writers have built significant positions at 20900 and 20800; below these levels, profit booking might increase.
Bank Nifty witnessed a significant rally during the week, but has been consolidating around 47,000 post-rally. A breakout from the current consolidation level could push the index towards 48,000 in the short term. Support is placed at 46,500, where put writers have built significant positions.
A decisive move above 47,200 might trigger a significant rally. The stock has broken out of a consolidation pattern on the daily chart, suggesting increased optimism. On the daily chart the stock is hovering within a broadening wedge.
Additionally, it remains above the critical moving averages, further indicating an uptrend. In the short term, the stock may reach 110 as long as it stays above 90. INDIACEM has moved up higher following a consolidation on the daily chart, suggesting increased optimism.
Additionally, it remains above the critical moving averages, further indicating an uptrend. In the short term, the stock may reach 300 as long as it stays above 260. The author, Rupak De is Senior Technical analyst at LKP Securities Disclaimer: The views and recommendations made above are those of individual
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