The Nifty index snapped a five‑day decline on Monday, pulling up thanks to buying in financial and consumer stocks, even as auto and IT shares faced selling pressure.
Nifty Breaks Losing Streak
After five sessions of falling, the market closed higher, driven mainly by financial and consumer sectors. The rally was limited, but it shows that the index may be turning around.
Technical Outlook
Senior Technical Analyst Rupak De says the daily chart formed a "piercing line" pattern, a sign that a bullish reversal could be forming after recent sell‑offs. On the hourly chart, the RSI moved out of the oversold zone, hinting at early recovery. However, the index still faces resistance around the 26,000–26,100 level, where sellers could re‑appear. Immediate support sits near 25,650.
Buy Recommendations for Tuesday
BSE (Buy at ₹2,790)
- Upside potential: ~9%
- Stop‑loss: ₹2,636
- Target price: ₹3,050
The stock broke above a descending trendline with strong volume, moving into bullish territory. It trades above its 20‑day and 50‑day moving averages, and the 200‑day average is also rising, confirming a positive long‑term trend. The RSI is around 58, showing solid momentum without being overbought. Higher lows suggest that strong investors are accumulating shares.
Coal India (Buy at ₹432)
- Upside potential: ~10%
- Stop‑loss: ₹415
- Target price: ₹475
Coal India completed a bullish breakout after clearing a long‑term symmetrical triangle. The stock now sits above key resistance and is holding above short‑ and medium‑term moving averages. An RSI near 72 indicates strong momentum, typical for an early breakout phase. The pattern of higher highs and higher lows points to continued upward movement.
Disclaimer
These ideas are based on technical analysis and are meant for informational purposes only. They are not a guarantee of future performance. Always do your own research and consider your risk tolerance before making any investment decisions.