Market likely to move in 9,450-9,700 range; top 3 stocks to buy on declines

Home » stock tips » Market likely to move in 9,450-9,700 range; top 3 stocks to buy on declines

The Nifty50 ended up giving a follow-up rally for a second consecutive day of July series on Monday and closed above its crucial resistance level of 9600.

The Nifty made a ‘hammer’ - like pattern on with a large trading range with higher lower shadow indicating a buying at lower levels. It has a small body on the upper side indicating a closing with strength in the momentum.

The gains were majorly led by buying in FMCG heavyweights such as ITC coupled with buying interest seen in metals, infrastructure, and auto space. The broader market, too, saw some buying interest.

The Nifty Bank dragged but closed with some marginal gains as it saw pressure at upper levels. We still believe that investors should remain cautious and recommend to trade with strict stop loss strategies.

If the index heads higher from current levels then resistance is seen at strike prices 9650 - 9690 while support now comes at 9580-9540. The range for the overall market comes at about 9,450 – 9,700 and only a significant breakout will further decide momentum in the market.

The stock has taken a strong support at its 100-days EMA and bounced back to close near its day's high making a bullish candle on the daily candlestick charts.

The stock is likely to face some resistance around Rs 185, but once it breaches this level, the stock looks poised to hit levels beyond Rs 190.

The relative strength index (RSI) indicator is also indicating bullish move for which the stock is a good buy above Rs185 level for a target of Rs 190-195 and a stop loss below Rs 176.