- The Indian stock market is showing signs of bearish sentiment, with the Nifty index breaking down from the rising channel on the daily chart.
- The Bank Nifty index remains under bearish control, with resistance at elevated levels.
- Stock recommendations include Indus Tower, EIH Hotels, and Bata India, all showing potential for short-term bullish trends.
Explore the latest developments in the Indian stock market, including the bearish trend in the Nifty and Bank Nifty indices, and stock recommendations for potential short-term gains.
Indian Stock Market Overview
The Indian stock market is currently experiencing a bearish sentiment. On the daily chart, the Nifty index has broken down from the rising channel. This breakdown indicates a rise in bearish sentiment and the trend is likely to remain weak in the near term. Resistance is noted at 22,200 and as long as the Nifty remains below this level, a strategy of selling on rallies may be favorable for traders. Support at the lower end is situated at 21,950 on a sustained basis; a decisive drop below this level could trigger panic in the market.
Bank Nifty Index
Meanwhile, the Bank Nifty index remains under the control of bears, encountering resistance at elevated levels. Immediate resistance for the Bank Nifty stands at 48,000, coinciding with the highest open interest on the call side. A breakthrough above this level could trigger fresh short-covering moves. On the downside, the index finds support at 47,050, represented by the 100-day exponential moving average (EMA). Sustaining above this level may pave the way for potential pullback moves in the index.
Stock Recommendations
Indus Tower
Indus Tower is a recommended buy at ₹333 with a target price of ₹354 and a stop loss at ₹322. The stock has moved up after forming a base on the hourly chart. The recent positive move was preceded by a sharp correction in the price. The hourly RSI (14) has exited the oversold zone. Over the short term, the stock might move towards 354.
EIH Hotels
EIH Hotels is another recommended buy at ₹488 with a target price of ₹520 and a stop loss at ₹469. The stock has risen after two days of consolidation on the daily timeframe, indicating an increase in bullish sentiment. It has sustained above the critical moving average 21EMA. The hourly RSI (14) shows a bullish crossover. The trend appears bullish in the short term.
Bata India
Bata India is recommended for buying at ₹1310 with a target price of ₹1450 and a stop loss at ₹1259. On the daily chart, a bullish harami pattern has formed after prolonged correction, suggesting a strong possibility of bullish reversal. The daily RSI is in positive divergence with the price and has exited the oversold zone. The current technical set up suggests that the stock might recover over the short term.
Conclusion
The Indian stock market is currently showing a bearish trend, with the Nifty and Bank Nifty indices facing resistance. However, stocks like Indus Tower, EIH Hotels, and Bata India show potential for short-term gains. Investors are advised to consult with certified experts before making any investment decisions, as market conditions can change rapidly.
