Market Overview
- Nifty Index: Nifty opened flat on Thursday, faced selling pressure, and closed down at 24,199, forming a red candle that suggests market weakness. Key resistance levels are at 24,500 and 24,700, while support is holding at the 150-day Exponential Moving Average (DEMA) near 23,990 and recent swing support at 23,800. A range-bound movement between 23,800 and 24,700 is expected, and traders are advised to buy near support and sell near resistance levels until a breakout defines a new direction.
- Bank Nifty Index: Bank Nifty experienced profit-booking pressure, closing lower at 51,917. It has been consolidating in a range between 50,400 and 52,580. A decisive move above 52,580 could initiate a fresh uptrend, but support remains solid around the 150-day DEMA level of 50,540.
Volatility Indicator
- India VIX: India VIX, the volatility index, rose by 1.05% to 15.03, indicating higher market volatility. With the index closing at 14.94, if volatility continues to stay under 15, it could foster positive momentum in the market by encouraging buying interest.
Stock Recommendations
1. eClerx Services (ECLERX)
- Current Price: ₹3,295.35
- Target Price: ₹3,500
- Stop-Loss: ₹3,175
- Technical Analysis: ECLERX has recently broken through its resistance level of ₹3,150, showing a strong uptrend with substantial trading volume. It’s trading above its key EMAs (20-day, 50-day, 100-day, and 200-day), indicating solid bullish momentum. The Relative Strength Index (RSI) is at 69.83, reflecting increased buying interest. Support is strong at ₹3,175, making this a favorable buying opportunity for a potential move to ₹3,500.
2. Manorama Industries (MANORAMA)
- Current Price: ₹1,106.4
- Target Price: ₹1,180
- Stop-Loss: ₹1,065
- Technical Analysis: MANORAMA is currently trading at an all-time high of ₹1,133, having recently surpassed a crucial resistance at ₹1,025. Supported by robust trading volumes, the stock is showing strong upward momentum, validated by its position above major EMAs. The RSI stands at 73.1, indicating ongoing buying strength. For traders, maintaining vigilance near the ₹1,065 support level is advisable, as a breach could suggest a potential reversal.
In summary, ECLERX and MANORAMA are strong buy options, with clear target and stop-loss levels. The Nifty and Bank Nifty indices remain in consolidation phases, so careful attention to support and resistance levels can help guide trading strategies.
Disclaimer: This information is for educational and informational purposes only and should not be considered financial advice. Market investments are subject to risk; please consult a professional advisor before making any investment decisions.
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