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The Indian stock market witnessed a positive surge, closing with significant gains on Monday, August 11th. Both the Sensex and the Nifty 50 indices experienced a notable rise of nearly one percent each, signaling a renewed investor confidence. The Nifty 50 index successfully breached a crucial resistance level of 24,500, closing at 24,585. This breakthrough was attributed to short covering activities, which occur when investors who previously bet against the market (by short selling) buy back shares to limit their potential losses as the market moves upwards. The positive sentiment was further bolstered by signs indicating an easing of geopolitical tensions, creating a more favorable environment for investment. Market analysts and experts are optimistic about the near-term prospects of the market. According to their analysis, a decisive move above the 24,650 level on the Nifty 50 index could pave the way for further gains, potentially pushing the index towards levels above 24,850, or even surpassing that mark. This suggests that the upward momentum in the market is likely to continue, provided that the index can overcome the aforementioned resistance level. Nilesh Jain, Head Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking, provided a technical perspective on the market's performance. He highlighted that the Nifty 50 index has successfully regained its 100-day moving average (DMA), which is a key technical indicator used to assess the overall trend of the market. This 100-DMA aligns closely with the psychological level of 24,500, which now acts as an immediate support level for the index. Jain further identified the next support level at 24,340, providing investors with potential downside protection. While acknowledging that the broader market trend remains weak, Jain noted that the short-term bias has turned mildly positive. This shift in sentiment is primarily driven by the ongoing short-covering rally, which indicates a temporary surge in buying activity. However, he cautioned that this positive bias may not necessarily translate into a long-term sustainable uptrend. Jain suggested that the price structure of the Nifty 50 index indicates scope for a further pullback towards 24,750, implying that the market may experience a temporary retracement before potentially resuming its upward trajectory. Despite the cautious optimism, he advised investors to remain vigilant and closely monitor the market's performance. Other market experts, including Vishnu Kant Upadhyay of Master Capital Services and Amruta Shinde of Choice Broking, have also provided their insights on specific stocks that they believe have the potential to generate short-term gains. These experts have identified five stocks, each with specific target prices and stop-loss levels, providing investors with a framework for making informed trading decisions. The recommendations are based on a combination of technical analysis and fundamental factors, taking into account various indicators and market trends. The experts emphasize the importance of strict risk management to navigate the potential volatility in the market. Their picks offer different risk-reward profiles, and it's crucial for investors to carefully consider their own investment objectives and risk tolerance before making any investment decisions.
Vishnu Kant Upadhyay, AVP - Research & Advisory at Master Capital Services, has recommended three stocks for short-term investment: Eternal, Hindustan Unilever (HUL), and Indian Bank. Eternal, with a previous close of ₹309.40, is trading in a strong uptrend. Upadhyay suggests target prices of ₹346 and ₹355, with a stop loss at ₹280. He points out that Eternal's prices are holding firmly above the 50-day and 200-day EMAs, signaling sustained bullish momentum. After a sharp rally, the stock has formed a brief consolidation pattern near its recent highs, indicating healthy profit booking before the next leg up. The RSI at 67 remains in bullish territory without being overbought, suggesting further upside potential, and MACD stays in positive territory, supporting the ongoing momentum. According to Upadhyay, a breakout above the falling trendline resistance triggers a fresh rally towards ₹346 and then ₹355 levels, while strong support lies near ₹280, keeping the overall trend firmly positive. Hindustan Unilever (HUL), with a previous close of ₹2,518.40, is another stock recommended by Upadhyay. The target prices are set at ₹2,740 and ₹2,765, with a stop loss at ₹2,380. Upadhyay notes that HUL share price is forming a rounding bottom formation, signaling a gradual transition from a prolonged downtrend to a sustainable uptrend. The recent uptick in prices is accompanied by rising volumes, indicating strong accumulation interest from market participants. A golden crossover—where the 50-day EMA crosses above the 200-day EMA—further reinforces the bullish sentiment, often considered a powerful long-term buy signal. Following a healthy correctional fall from recent highs, prices have found support near the confluence zone of short- and long-term moving averages. The subsequent rebound reflects renewed buying momentum. The RSI sustaining above the 55–60 zone hints at further upside potential without being overbought. Moreover, the MACD remains in positive territory, adding strength to the bullish case. Indian Bank, with a previous close of ₹674, is the third stock pick from Upadhyay. The target prices are ₹730 and ₹750, and the stop loss is at ₹640. Upadhyay highlights that Indian Bank has given a breakout from a bullish consolidation, confirmed by a robust bullish Marubozu candle accompanied by rising volumes, indicating strong institutional participation. The price action remains well aligned above the 20, 50, 100, and 200 EMAs, reinforcing the prevailing uptrend. RSI holding above 65 reflects sustained momentum, while MACD’s bullish crossover adds confirmation. According to Upadhyay, the ongoing sequence of higher highs and higher lows, coupled with its bullish channel structure, signals firm control by buyers and potential for continued upside.
Amruta Shinde, Research Analyst at Choice Broking, has recommended PB Fintech (Policybazaar) and General Insurance Corporation of India (GICRE), along with a separate recommendation for Indian Bank. PB Fintech (Policybazaar), with a previous close of ₹1,860.60, has a target price of ₹2,070 and a stop loss of ₹1,755. Shinde notes that PB Fintech has rebounded from a key support zone after breaking out of a falling trendline. On increased volume, a strong bullish candle formed, indicating a potential bullish reversal. According to Shinde, a sustained move above the critical resistance level of ₹1,900 could open the way for an uptrend toward ₹2,070, supported by rising trading volumes that reflect strong buying interest. Downside support is placed at ₹1,800 in case of any minor pullback. The RSI stands at 59.17 and is trending upward, while the stock is comfortably trading above its 20-day, 50-day, and 200-day EMAs, further reinforcing the positive outlook. Shinde suggests that traders may consider entering at ₹1,860.6 with a stop loss at ₹1,755 and a target of ₹2,070, while maintaining strict risk management to handle potential short-term volatility. General Insurance Corporation of India (GICRE), with a previous close of ₹399.50, has a target price of ₹450 and a stop loss of ₹374. Shinde highlights that GICRE has rebounded from a key support zone and broken out of a range-bound phase with the formation of a strong bullish candle. According to Shinde, a sustained move above the critical resistance level of ₹410 could pave the way for an uptrend toward ₹450, supported by rising trading volumes that indicate strong buying interest. Downside support is placed at ₹390 in case of any minor pullback. The RSI stands at 61.72 and is trending upward, while the stock is comfortably trading above its 20-day, 50-day, and 200-day EMAs, further reinforcing the bullish outlook. Shinde advises that traders may consider entering at ₹399.5 with a stop loss at ₹374 and a target of ₹450, while maintaining strict risk management to navigate potential short-term volatility. Shinde also provides a recommendation for Indian Bank, with a previous close of ₹674, a target price of ₹740, and a stop loss of ₹644. Shinde observes that Indian Bank has reversed from a key support zone and broken out of a sideways range between ₹605 and ₹660 with the formation of a strong bullish candle accompanied by increased volume, signaling a bullish reversal. According to Shinde, a sustained move above the critical resistance level of ₹690 could pave the way toward ₹740, supported by rising trading volumes that indicate strong buying interest. Downside support is seen at ₹660 in case of any minor pullback. The RSI stands at 66.99 and is trending upward, while the stock is comfortably trading above its 20-day, 50-day, and 200-day EMAs, further reinforcing the positive outlook. Shinde suggests that traders may consider entering at ₹674.8 with a stop loss at ₹644 and a target of ₹740, while ensuring strict risk management to handle potential short-term volatility. In summary, both Vishnu Kant Upadhyay and Amruta Shinde provide specific stock recommendations based on technical analysis and market trends, emphasizing the importance of risk management for short-term trading strategies. Investors should carefully evaluate these recommendations and conduct their own research before making any investment decisions.