BackStocks to Buy: Here's why PNB and RBL are short-term buys
Nifty declines, sentiment bearish, support at 19,600. BankNifty bearish, sell on rise approach. COLPAL and PNB show potential for upside. RBLBANK uptrend continues.
PremiumNifty experienced consistent selling pressure throughout the week, resulting in a decline of 2.80% from its all-time high. This recent correction has caused it to dip below the critical 21-day Exponential Moving Average (21EMA). The sentiment appears bearish at this point, with a key support level identified at 19,600. A breach below 19,600 could potentially initiate a more significant market correction. On the upside, 19,800 is expected to serve as a resistance level.
The BankNifty index witnessed a significant double top breakdown pattern, which often signals a reversal in trend. This bearish pattern was largely influenced by selling pressure in HDFC Bank.The index breached its 20-day moving average (20DMA) located at 45,000. A break above this level could trigger some short-covering, but the overall sentiment remains bearish.The prevailing sentiment in the BankNifty index remains bearish. As a result, it's advisable to maintain a "sell on rise" approach. The next immediate support is seen in the 44,500-44,400 range.
COLPAL |Recommendation| Buy ₹2001| Target ₹2100/2250| Stop Loss Rs1900
COLPAL is showing signs of breaking out from a sideways consolidation phase, with immediate resistance at the 2,030 level. This suggests that the stock may be gearing up for an upward move. The stock is finding support at its 20-day moving average (20DMA), situated at 1,970. This moving average is acting as a cushion for the bulls and indicating potential strength in the stock. The momentum indicator, RSI (Relative Strength Index), has generated a positive crossover and is rebounding from the oversold territory. This confirms a buy signal and hints at improving momentum if the breakout is successful, the potential upside targets for COLPAL are in the range of 2,100 to 2,250.
PNB| Recommendation | Buy ₹77.65| Target ₹85| Stop Loss ₹74
PNB has resumed its upward trajectory following a short consolidation period on the daily timeframe. Furthermore, the stock has maintained its position above the crucial moving average. The Relative Strength Index (RSI) has undergone a bullish crossover. Support is established at 74 on the lower end, while there is potential for it to reach 85 on the higher end.
RBL BANK | Recommendation | Target Buy ₹232.50| Target ₹242/256| Stop Loss ₹224
The weekly chart shows a clear uptrend, indicating a buying opportunity on dips for potential further upside.The daily chart is holding above the 50-day Moving Average (DMA) support, and it has also closed above the previous day's close, signaling positive strength.The MACD indicator is suggesting positivity in the stock's momentum.Based on these technical patterns and indicators, there is a technical expectation of reaching levels around 242 to 256 on the upside.
The author is Rupak De, Senior Technical 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.
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