Nifty has continued its bullish sentiments for the third consecutive day, closing at an all-time high level on February 3.
Nifty closed above 14,750 levels for the first time.
It has witnessed a sharp V-shaped reversal rally on the daily chart and closed above its 21-day exponential moving average.
India’s service sector expanded for the fourth consecutive month in January as business activities quickened and rising business optimism is set to sustain the growth momentum.
Momentum oscillator RSI (14) has given breakout above the downward slopping trendline and is currently reading above 60 levels with bullish crossover on the daily interval.
Bank Nifty has given a horizontal trendline breakout above its previous anchor point on the weekly timeframe and is currently trading in unchartered territory with a rise of more than 3,500 points in the previous three trading sessions.
The base support for Nifty has shifted above 14,500–14,600 levels and any dip near the said levels can be used as a buy on dips opportunity.
The index may touch the 15,000-mark in the coming trading sessions.
Here are three buy calls for the short-term:
Mphasis | LTP: Rs 1,586.95 | Target price: Rs 1,680 | Stop loss: Rs 1,545 | Upside: 6%
After two weeks of consolidation, this stock has witnessed a falling wedge pattern breakout on the daily timeframe and is currently trading above its trendline support.
A recent minor retracement has found support near the 50-day exponential moving average.
Currently, the stock is trading above its 50 and 21-day EMA which is positive for the counter in the near-term.
The stock has found support near 50 percent retracement which is placed at Rs 1,508 from its previous intermediate low on the weekly interval.
Bharti Airtel | LTP: Rs 611.90 | Target price: Rs 640 | Stop loss: Rs 590 | Upside: 5%
This stock has broken out from the consolidation it held for the last two weeks and witnessed a bullish flag pattern breakout on the daily chart.
Since mid-October last year, this counter has been trading in a higher bottom higher top formation on a daily scale.
The stock is trading above its upward slanting trendline. Indicators and oscillators like RSI & MACD have been showing strength on the daily and weekly charts.
The stock is above its 21 and 50-day exponential moving averages and based on the price action analysis on the short and medium timeframes, we can say that the medium-term trend of the stock remains bullish.
Titan Company | LTP: Rs 1,520.10 | Target price: Rs 1,605 | Stop loss: Rs 1,479 | Upside: 6%
After a prolonged consolidation, Titan has witnessed a falling channel pattern breakout on the daily interval.
This week, it has given a fresh breakout above the key resistance level of Rs 1,480.
The stock has managed to close above its 21 and 50-day exponential moving averages on the daily chart which is placed above Rs 1,490.
Positive divergences on secondary oscillators with rising volumes also support the next up-move in the prices.
RSI (14) has also witnessed trendline breakout above 45 levels with bullish crossover and currently reading above 50 levels on the daily timeframe.
(The author is a technical analyst at Bonanza Portfolio)
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