The Nifty is witnessing profit booking near the psychological level of 20,000, but the market continues to show strength, supported by the 20-day moving average (20-DMA) at 19,500. The 20-DMA acts as a crucial support level, and a move below it could lead to a market correction. However, in a bullish scenario, resistance levels lie at 19,800 and 20,000.
Market Strength Supported by 20-DMA
Bank Nifty’s performance has been relatively good, finding support between 45,000 and 45,200. A breach below this support zone may trigger a significant decline, while resistance is anticipated at 46,600, followed by 47,000 after crossing that level.
Market participants should closely monitor the US Federal Reserve’s Federal Open Market Committee (FOMC) decision on interest rates, which will be announced late night on July 26 (according to India’s time). Additionally, investors should be ready to respond to the June quarter results of individual stocks. Currently, F&O signals are neutral ahead of F&O expiry.
Stock Picks for Potential Short-term Gains:
Bikaji Foods International
Recommended for purchase at Rs. 488 with a target price of Rs. 556 and a stop loss at Rs. 447. The stock has recently emerged from a consolidation phase with high volumes, displaying an inverse head and shoulders pattern on the daily chart. Trading above crucial moving averages and with positive RSI and MACD indicators, the stock shows promise.
Hindustan Oil Exploration Company
This stock is suggested for investment at Rs. 230 with a target price of Rs. 264 and a stop loss at Rs. 210. Having broken out from a month-long consolidation with strong volumes on the weekly chart, the stock exhibits a classical pattern on the daily chart, pointing to a target of Rs. 250 and a potential upside to Rs. 264.
Recommended for purchase at Rs. 501 with a target price of Rs. 584 and a stop loss at Rs. 460. The stock has broken out from a triangle formation on the daily chart, supported by high trading volumes. It trades above important moving averages, signaling a bullish sentiment, and is backed by positive RSI and MACD indicators, indicating potential short to long-term growth.