The market landscape has been dynamic in recent days, with the Nifty50 experiencing fluctuations before closing with minor losses on November 20. However, there are some key opportunities emerging in the short term that investors should consider.
One important factor to note is that the Nifty recently broke out from a downward sloping trendline, signaling a positive short-term trend. It is currently placed above its 5, 11, and 20-day Exponential Moving Averages (EMA), further supporting this positive momentum. Additionally, in the Option segment, Put writing has been observed at the 19,500-19,600 levels, which coincide with the 11 and 20-day EMA levels. This suggests a strong support range for the index.
On the resistance side, a triple top chart pattern has formed around 19,850 levels for the Nifty. However, a decisive breakout above this level could potentially lead to new all-time highs for the index.
While the broader market indices have shown strength, there are three specific buy recommendations for the next 3-4 weeks:
1. Orient Cement: The stock price has broken out on the weekly line chart, reaching all-time high levels. Momentum indicators and oscillators also suggest strength in the stock.
2. IRFC: Indian Railway Finance Corporation has broken out from a downward sloping trendline on the daily chart. The primary trend is positive, and oscillators indicate strength in the stock.
3. Fortis Healthcare: The stock price has broken out from a downward sloping trendline on the daily chart, with higher volumes on both the weekly and monthly charts. The healthcare sector is also showing strength.
These recommendations present potential returns of 12%-16% and are based on technical analysis of the stock price movements.
Q: What is the short-term trend of the Nifty50?
A: The short-term trend of the Nifty50 remains positive as it is placed above its 5, 11, and 20-day Exponential Moving Averages.
Q: What are the support and resistance levels for the Nifty50?
A: The Nifty50 has a strong support level at 19,500-19,600, while the resistance level is around 19,850.
Q: Which stocks are recommended for the next 3-4 weeks?
A: Orient Cement, IRFC, and Fortis Healthcare are the recommended stocks for the next 3-4 weeks.
Q: What factors support the recommendations?
A: The recommendations are supported by technical analysis, including breakout patterns and strength indicated by momentum indicators and oscillators.
Sources: The Economic Times