Stocks to Buy: Why you should bet on Tata Power and IndusInd bank for short term
Nifty displayed strength, primarily driven by strong demand for large-cap stocks. The overall trend remained robust as the index consistently stayed above a critical moving average. However, a significant hurdle for the Nifty came in the form of substantial Call writing at the 19900 strike price.
Looking ahead, only a decisive move above the 19900 level has the potential to propel the index towards the 20200 mark. On the flip side, there was substantial Put writing at the 19700 level, providing strong support for the Nifty. The Bank Nifty index witnessed a strong bullish momentum as the bulls took full control.
Following the breakthrough of the resistance level at 44,650, there was a sharp rally of 600 points. The next significant hurdle on the upside is situated at 45,500, where the highest open interest is concentrated. The index maintains a "buy on dip" mode, with robust support seen at the 44,800 levels, underlining the bullish sentiment in the market.
IndusInd Bank's stock is showing promising signs on the daily chart, with a closing above its resistance level. It is also trading above its 50-day moving average, suggesting strength. The Relative Strength Index (RSI) at 61 indicates momentum building.
Traders may consider a long position with a stop-loss between 1414 and a target of 1500/1550 on the upside. Tata Power is on an impressive run, showing multiple breakouts on the daily chart, accompanied by strong delivery volume. It's outpacing its peers in the power sector, maintaining a position above both the 50-day and 200-day moving averages.
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