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Business News/ Markets / Stock Markets/  Stocks to buy: City Union Bank and Deepak Nitrate among top choices, here's why
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Stocks to buy: City Union Bank and Deepak Nitrate among top choices, here's why

Despite facing selling pressure from higher levels, the BankNifty index managed to defend the crucial support at 48000.

Stocks to buy (iStock)Premium
Stocks to buy (iStock)

Indian stock market: The Nifty remained under selling pressure throughout the session as the index failed to sustain above the crucial level of 22500. On the daily chart, a dark cloud cover pattern is observed, indicating a potential bearish reversal. Immediate support is situated at 22300, below which the Nifty could extend its losses towards 22000. On the other hand, the level of 22500 might act as a technical resistance for the Nifty.

Bank Nifty

Despite facing selling pressure from higher levels, the BankNifty index managed to defend the crucial support at 48000. The bullish sentiment persists as long as it remains above this level, where significant open interest is concentrated on the put side. Currently, the immediate hurdle lies at 48600, and a decisive breakthrough above this level could pave the way for new all-time highs in the index.

Stocks to buy

Housing And Urban Development Corp Ltd: Buy at 227 | Target price: 250/260 | Stop Loss: 214

The stock has experienced a significant breakout on the daily chart, characterized by a sharp surge in trading volumes, emerging from a sideways consolidation pattern. This breakout is further supported by a positive crossover observed on the daily chart's momentum indicator, the RSI, signaling a buy opportunity. Additionally, the stock is currently trading above its short-term moving average of 20DMA, reinforcing the bullish sentiment in the market.

Deepak Nitrite Ltd: Buy at 2450 | Target price: 2600/2800 | Stop Loss: 2300

The stock is poised for a breakout from a rounding bottom formation observed on the weekly chart, indicating a potential bullish trend reversal. This sentiment is further supported by the momentum indicator RSI, which has recently given a positive crossover and surpassed the key level of 60, confirming the bullish momentum. Additionally, the stock has demonstrated a strong reversal from its 20-day moving average (20DMA) at 2300, suggesting solid support and acting as a cushion for bullish traders.

City Union Bank Ltd: Buy at 160 | Target price: 175/185 | Stop Loss: 150

The stock is poised for a breakout from a rectangle pattern, suggesting accumulation at lower levels. Trading above both its short-term (20DMA) and medium-term (50EMA) moving averages indicates a bullish undertone. Additionally, the momentum indicator RSI has reversed from oversold territory and entered the strong buying zone, further supporting the potential for an upward move in the stock's price.

The author, Kunal Shah is Senior Technical & Derivative Analyst at LKP Securities.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

 

 

 

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Published: 28 Apr 2024, 04:58 PM IST
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