By Rupak De, senior technical analyst at LKP Securities
Throughout the trading session on July 26, Nifty showed limited movement as investors awaited the Federal Reserve's rate decision. As expected, US Federal Reserve raised fed funds rate by 25 bps to a target range of 5.25-5.5 percent later in the day.
The index found support at the 9-day EMA (exponential moving average) when on the lower end of the range. The daily chart indicated a downward consolidation breakout, suggesting potential downward momentum. The RSI (relative strength index) confirmed this sentiment with a bearish crossover.
Key support is identified at 19,700, while resistance levels were observed at 19,900-20,000, providing crucial reference points for traders and investors.
The Bank Nifty index is currently in a consolidation phase, displaying a lack of significant movements ahead of the FOMC meeting, suggesting market participants are awaiting the outcome before committing to a direction. The index has established a support level at 45,600 and a resistance level at 46,400.
A break above the resistance or below the support on a closing basis could potentially trigger a trending move in the market.
Here are three buy calls for next 2-3 weeks:
Indus Towers: Buy | LTP: Rs 180.70 | Stop-Loss: Rs 174 | Target: Rs 192 | Return: 6 percent
The stock has exhibited a bullish trend by surpassing the previous swing high and breaking above recent consolidation levels. The RSI's (relative strength index) bullish crossover further reinforces the positive momentum.
With this uptrend, there is a possibility of the stock reaching Rs 192 as a higher target, while having support at Rs 174.
IDFC: Buy | LTP: Rs 116 | Stop-Loss: Rs 113 | Target: Rs 123 | Return: 6 percent
IDFC has shown a positive trend on the daily chart, breaking above recent consolidation and staying above a crucial moving average.
The RSI's bullish crossover further supports the upward momentum. With this trend, the stock may potentially move towards Rs 123 as a higher target, while having support at Rs 113.
Mahindra Lifespace Developers: Buy | LTP: Rs 491 | Stop-Loss: Rs 477 | Target: Rs 520 | Return: 6 percent
The stock has formed a Bullish Engulfing candle on the daily chart, indicating strong buying momentum. It has also broken above the recent consolidation range.
The RSI's bullish crossover further confirms the positive outlook. Considering this trend, there is a potential for the stock to reach Rs 520 as a higher target. On the lower end, the support is placed at Rs 477.
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