Following global cues, domestic benchmark indices began the day higher. As a consequence of strong purchasing, Nifty had a great start to the day and reached a new all-time high of 26,250.90 before closing the day at 26,216 on Thursday. With significant buying activity, Bank Nifty saw a strong start to the day and reached a new all-time high of 54,467.35, with some profit bookings. Consequently, the Bank Nifty index closed the day at 54,375, indicating a favourable outcome. There has been a fall in market volatility as seen by the 7.12% drop in the volatility index, INDIA VIX, which settled at 11.84.

Nifty Outlook

“Technically, the index has given a fresh breakout to the rising channel pattern around 26,000 and managed to sustain above 26,200 threshold. As long as, Nifty sustains above the breakout level of 26,000 a “buy on dips” strategy should be adopted for Nifty. Previously, Nifty had also given a breakout to a short-term rising wedge pattern. According to that rising wedge pattern breakout the index could test the level of 26,500 and 26,800 in short to medium term. On the downside, psychological level of 26,000 will serve as an immediate support for the index,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Prediction

“Technically, the index is oscillating within a rising channel. The index has also witnessed a fresh rounding bottom pattern breakout. However, index might face an immediate hurdle near 54500 levels and if sustains above it then it might test the levels of 55,000-55,500, where the upper trend line resistance of the channel pattern is placed. On the downside, the breakout level near 53,350 and the Psychological level of 53,000 will serve as support points. Thus, buy on dips strategy should be adopted in Bank Nifty for the short term,” commented Hrishikesh Yedve.

Stocks To Buy Today

Choice Broking’s executive director, Sumeet Bagadia, recommended buying two intraday stocks following the September series, which saw the Nifty rise by more than 4%.

Apollo Tyres

Buy APOLLOTYRE in Cash @ 564.25, stop-loss @ 545, target @ 600

APOLLOTYRE is currently trading at 564.25, showing a clear uptrend with the stock making higher highs and higher lows since August. The pattern suggests a breakout from consolidation as the stock has reversed from key support levels. If the stock breaks its key resistance level of 568, it could see a short-term target of 600.

On the downside, immediate support is located at 556, which could provide an opportunity to buy on dips. The Relative Strength Index (RSI) is currently at 72.89 and trending upward, indicating strong buying momentum. To manage risk effectively, setting a stop-loss at 545 is advisable to protect against any unexpected market reversals.

In conclusion, based on the technical setup and current market conditions, APOLLOTYRE presents a promising buying opportunity with a target of 600, provided that proper risk management strategies, such as stop-loss placement, are followed.

Vedanta

Buy VEDL in Cash @ 501.75, stop-loss @ 487, target @ 532

Vedanta Limited (VEDL) is currently trading at Rs 501.75, showing a strong bullish trend characterized by the formation of higher highs and higher lows. The stock recently broke out from consolidation range and trading near all time heigh, confirming upward momentum. This breakout is accompanied by a significant increase in trading volumes, indicating strong buying interest from investors. The stock is likely to target Rs 532 in the short term.

The Relative Strength Index (RSI) stands at 76.46, reflecting strong bullish strength.. Despite this, VEDL is trading comfortably above its key 20-day, 50-day, and 200-day Exponential Moving Averages (EMA), reinforcing the positive trend.

If VEDL sustains above the critical resistance level of Rs 510, it presents a favorable long trading opportunity. Investors may consider entering a long position with a target price of Rs 532 while maintaining a stop loss at Rs 487 to manage risk effectively. Proper risk management is crucial to protect against potential downside, given the elevated RSI and the possibility of short-term volatility.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.

Story first published: Friday, September 27, 2024, 7:03 [IST]