Here is why Dabur and Reliance are top technical bets
Bulls have taken control of the Indian equity market, as the Nifty has experienced a consolidation breakout on the daily chart. The rally has been supported by the strength in Reliance, ITC, and IT stocks, said Kunal Shah of LKP Securities
PremiumIn the weekly wrap, the headline index showed strong buying activity from lower levels, resulting in a 1.6% increase in the Nifty index. However, the Bank Nifty index ended the week relatively flat, with a marginal 0.07% change. The broader markets experienced robust buying, with the Midcap index surging by 2.58% and the Small Cap index rising by 1.13%. Among the sectoral indices, Nifty Pharma emerged as the outperformer, recording a substantial gain of 3.84% for the week. This suggests that the pharmaceutical sector had a particularly strong performance compared to other sectors. Overall, the week witnessed positive momentum in the headline index and broader markets, with the pharmaceutical sector leading the way. Traders and investors should closely monitor these trends in the coming weeks for potential investment opportunities.
Bulls have taken control of the Indian equity market, as the Nifty has experienced a consolidation breakout on the daily chart. The rally has been supported by the strength in Reliance, ITC, and IT stocks. The Nifty has been sustaining above a critical moving average, indicating a strong position. The trend is expected to remain positive as long as the index sustains above the support level of 18,400. On the higher end, there is a resistance level at 18,700.
Read all market stories here
The Bank Nifty index witnessed a strong comeback by the bulls, overpowering the bears. There was consistent buying activity throughout the day, indicating bullish sentiment in the market. If the index manages to sustain above the level of 44,000, it has the potential to experience further upside towards 45,000. The momentum indicator RSI has also confirmed a positive crossover, reinforcing the buy signal. Traders and investors should closely monitor the index for sustained strength above 44,000 and consider the potential for continued upward movement based on the bullish momentum and buying activity observed.
DABUR | Target: ₹585 | Support: ₹ 519
The Dabur stock has experienced a breakout above a falling trendline, which suggests a reversal of the downtrend. Furthermore, it has been sustaining above a critical near-term moving average, indicating strength in the stock's price action. The Relative Strength Index (RSI) is in a bullish crossover, supporting the bullish outlook. The potential upside target is at ₹585, indicating further room for price appreciation. On the downside, there is a support level at ₹519, which may act as a buffer in case of any retracement.
RELIANCE | Target: ₹2,650
The stock of Reliance has experienced a strong breakout on the daily chart, accompanied by a sharp surge in trading volumes. This breakout indicates a significant shift in the stock's price movement. Additionally, the stock took support at the 200EMA (Exponential Moving Average) and witnessed a strong rally from that level. The momentum indicator RSI has also confirmed a positive crossover, further validating the buy signal. Based on these factors, the stock has potential upside targets at ₹2,600 and ₹2,650. Traders and investors should closely monitor the stock, considering the breakout, the bullish rally from the 200EMA, and the positive momentum signal.
The author, Kunal Shah is Senior Technical & Derivative analyst at LKP Securities
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
