Market Updates : Despite finishing in the red, the market was able to bounce back from its intraday lows on January 2. The Nifty held its position above 21,600, but the Sensex fell 379 points to close at 71,892. The Nifty closed at 21,660, down 82 points from its opening value. The Midcap Index dropped 73 points to 46,400, while the Nifty Bank lost 521 points to settle at 47,713.
The Nifty is currently trading close to the 21,800 resistance level, with 21,550 acting as an immediate support. A decline to below 21,550 might trigger profit-booking, with the 21,350 mark as the goal. It is expected that the market will move sideways and become more volatile.
The Bank Nifty is seeing resistance around 48,000, with 47,400 serving as an immediate support level. There are two more support levels: 47,200 and 47,000. To the upside, a target zone of 48,600 might be reached by breaking through the immediate resistance zone, which is located between 48,000 and 48,200.
Paradeep Phosphates: Buy | LTP: Rs 76.80 | Stop-Loss: Rs 70 | Target: Rs 86 | Return: 12 percent
On the weekly chart, the counter has seen a breakout of a protracted consolidation pattern with robust activity. Furthermore, it has shattered the Cup-and-Handle shape. With a positive tilt in momentum indicators and trading above its crucial moving averages, the counter exhibits a highly conventional overall shape.
Positively, Rs 80 is a significant psychological threshold; above it, a climb towards Rs 86+ is anticipated. When there is a downturn, a group of moving averages at about Rs 70 represents a strong demand zone on the downside.
The relative strength index (RSI) and moving average convergence divergence (MACD) indicators both support the stock’s present momentum strength.
Shipping Corporation of India: Buy | LTP: Rs 174 | Stop-Loss: Rs 159 | Target: Rs 194 | Return: 12 percent
The counter, which is in a traditional uptrend, recently broke out of a triangle shape to continue rising. It initiated a fresh leg of rise above Rs 190 after retesting its prior breakout level at Rs 155. Volume is increasing at the same time as the breakout, and it stays above the breakout level. With a positive bias in momentum indicators, it is trading above its crucial moving averages.
Upside, Rs 180 represents an immediate resistance zone; above it, a short-term surge above Rs 190+ levels is anticipated. The level of Rs 159 will serve as a solid support level on the downside. It is admirably adhering to its 9 and 20-DMA, a well-known indicator of trend strength.
Divis Laboratories: Purchase | Stop-Loss: Rs 3,840 | Target: Rs 4,354 | LTP: Rs 4,030 | Return: 8% Over a longer period of time, the counter has seen the breakout of an inverse head and shoulder pattern. After 16 months, the breakout is accompanied by a substantial trading volume and has closed above the breakout level, signifying a noteworthy milestone.
Since the counter is currently trading above all of its significant moving averages, its overall structure is very favorable. The counter’s current strength is supported by the moving average convergence divergence (MACD), and the relative strength index (RSI) indicates bullish momentum.
Higher still, Rs 4,200 is serving as a significant psychological barrier; above it, we should anticipate a level of at least Rs 4,350 in the near future. If there is a correction on the downside, Rs 3,840 is the key support level.
Disclaimer : It is recommended that readers get advice from a licensed financial advisor prior to making any investing decisions.