The Indian stock market opened on a strong note on Monday, driven by positive global cues. The Nifty index started higher and closed at 25,128, while Bank Nifty also saw upward momentum, ending at 51,817. Market volatility eased, as reflected by the INDIA VIX, which dropped by 1.70% to settle at 13.00, signaling reduced market fluctuations. In the near term, market attention will shift to stock-specific movements during the Q2 earnings season, with a special focus on Reliance Industries following its mixed Q2 results.
Nifty Outlook:
- On the daily chart, Nifty formed a green candle, indicating strength in the index.
- Upside resistance: 25,270 (21-day Exponential Moving Average), followed by 25,400.
- Downside support: Immediate support is near 24,900.
- Strategy: As long as Nifty holds above 24,900, a “buy on dips” strategy is recommended.
Bank Nifty Outlook:
- The index also formed a green candle, sustaining above the high of the hammer candle near 51,785, which has triggered fresh bullish momentum.
- Target range: 52,500-52,800 in the short term.
- Support level: Strong support at 51,000 (100-day Exponential Moving Average).
- Strategy: A “buy on dips” approach is suggested as long as Bank Nifty stays above 51,000.
Stock Recommendations:
- Tech Mahindra (TECHM)
- Buy price: ₹1,692.5
- Stop-loss: ₹1,630
- Target price: ₹1,777
- TECHM has broken through ₹1,658, showing strong upward momentum with increasing volume. The stock is trading above key moving averages, and the Relative Strength Index (RSI) of 61.91 supports a bullish outlook. Investors can aim for ₹1,777, with a stop-loss at ₹1,630 to manage risk.
- Dixon Technologies (DIXON)
- Buy price: ₹15,265.05
- Stop-loss: ₹14,666
- Target price: ₹16,250
- DIXON has formed a higher high and higher low pattern, signaling an uptrend. With growing market interest and rising trading volumes, the stock is expected to continue its upward trajectory. It is currently trading above its 20-day, 50-day, and 100-day Exponential Moving Averages, reinforcing the bullish momentum. Investors can target ₹16,250, with a stop-loss at ₹14,666 to protect against downside risk.
Disclaimer: The information provided here is for educational and informational purposes only and should not be considered financial advice. Investing in the stock market involves risk, and past performance is not indicative of future results. Please conduct your research or consult with a licensed financial advisor before making any investment decisions. The author is not responsible for any losses that may occur as a result of following this information.
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