Stock Market Update: The domestic stock market continues its impressive journey as the BSE Sensex breaks successive milestones, surpassing 64,000, 65,000, and now reaching a historic high of 66,000 within two weeks. Similarly, the Nifty 50 index approached the intraday high of 19,600. However, technical analysis reveals a bearish engulfing pattern on the daily chart, indicating potential signs of a slowdown. Despite the bearish signals, the overall trend remains positive as long as the Nifty sustains above the support level of 19,300.
senior technical analyst Rupak Dey’s statement on Stock Market
According to Rupak Dey, a senior technical analyst at LKP Securities, if the Nifty breaks below the support level, it may decline to the range of 18,900-19,000. On the upside, although it briefly crossed the resistance level of 19,500, it couldn’t sustain above it. Turning to the Bank Nifty, it broke the support level of 44,800 and is currently finding support at the 44,500 level. In such a scenario, weakness in the Nifty Bank should be seen as a buying opportunity. Resistance at the 45,000 level may pose a challenge.
Three stocks for short-term profit says Rupak Dey
Furthermore, Rupak Dey recommends three stocks for potential short-term profits. NCC has broken its consolidation pattern on the daily chart and is currently trading above important moving averages, indicating strength. The Relative Strength Index (RSI) has formed a bullish crossover, further confirming an upward trend. With shares currently priced at Rs 131 on the BSE, NCC has a potential upside of 11%, reaching Rs 145. It is advisable to set a stop loss at Rs 130.
Similarly, National Mineral Development Corporation (NMDC) shares have broken out of a double bottom pattern on the daily chart, signifying a continuation of the bullish trend. It has also crossed the 50-day Exponential Moving Average (EMA) at Rs 107.92, suggesting strength. The RSI has formed a bullish crossover, indicating an uptrend. With shares currently priced at Rs 110.40 on the BSE, NMDC shares have a potential target of Rs 120. A stop loss at Rs 107 is recommended for investment purposes.
