The benchmark index staged a moderate recovery today, with the headline index closing above the crucial 24,200 mark, bouncing back from an intraday low below 23,900.
Following a sustained sell-off driven by Foreign Institutional Investor (FII) selling, the market found support slightly above the 23.6% Fibonacci retracement level of 15,183 to 26,277, located around the 23,720-23,750 range.
Despite signs of exposure near the 200-day Exponential Moving Average (DEMA), a close above the 24,500 level is expected to alleviate correction concerns, with the 200 DEMA support sitting at the 23,500 mark. Market analysts suggest a recovery could push the headline index towards new all-time highs before the upcoming budget.
Key Stock Picks for Swing and Medium-Term Investment:
1. CAMS: The stock is strong above its 50- and 100-day EMAs amid rising mutual fund inflows. A potential target range is 5,200-5,500.
2. CDSL: Trading in a consolidation zone with resistance at 1,650, the stock shows potential for a breakout towards 1,800. Price targets are 1,750 and 1,800.
3. MCX: The stock remains above the 20- and 50-day EMAs and may soon retest 7,000-7,100 levels. Buy with a stop-loss below 6,100.
4. Oberoi Realty: In a horizontal channel, the stock is positioned for an advance with a daily close above 2,020. A rounding bottom pattern on the weekly chart suggests targets of 2,150-2,200.
5. Axis Bank: Suggested buy around 1,160-1,165, with a target of 1,230-1,250 and a stop-loss below 1,130.
6. ICICI Bank: Recommended buy around 1,285-1,290, targeting 1,340-1,360, with a stop-loss at 1,255.
Index Outlook for Traders:
· Nifty: Anticipate volatility ahead of the U.S. election and FOMC Meeting. Immediate resistance is at the 24,280-24,300 range, with potential for intraday highs of 24,380-24,400 on a breakout.
· Bank Nifty: Expected to hold firm, buy on dips around the 51,700-51,750 support range. A close above 52,500 could push towards 53,300-53,400.
Prepared by Bitupan Majumdar, SEBI-registered research analyst (Reg. No. INH30006962). Investors are advised to consult their financial advisor before making any investment decisions.
