Stocks to buy: Motherson and SAIL among top bets, here's why
Indian stock market: Nifty slipped lower as it experienced a consolidation breakdown in the lower timeframe. The sentiment appears somewhat negative for the short term. However, there is observed support at 22500 on a closing basis.
As long as it maintains above 22500 on a closing basis, we do not anticipate a significant correction in the market. Sustained trading above 22500 could potentially push the index towards 22650-22700 once more. Conversely, a drop below 22500 might initiate a correction of 200-250 points on the downside.
The Bank Nifty index experienced significant selling pressure, marking a return of bearish momentum after a prolonged period. The index is currently facing strong resistance at the 49,000 mark, and only a decisive close above this level could revive the upward trend towards the 50,000 mark. Immediate support for the index is established at 48,000, where the highest open interest on the put side has been observed.
A breach below this level could intensify the selling pressure. The stock is demonstrating bullish signals, evident from the formation of a bullish flag pattern on the daily chart, positioning it near a breakout. It has shown resilience by repeatedly bouncing off its short-term moving averages (20DMA and 50DMA), indicating robust support at lower levels.
Currently, the support is identified at 880, providing a solid base for potential bullish movements. The stock is targeting higher levels, with upside potential at 1000 to 1060. Samvardhan Motherson stock is showing signs of a potential breakout, having formed a bullish diamond pattern on the daily chart.
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