Finance Minister Nirmala Sitharaman is set to unveil the first Union Budget 2024 for the newly-elected Modi 3.0 government later this month. The upcoming budget is expected to extend the interim budget presented earlier this year in February 2024. Market sentiment has turned bullish since the end of June, driven by resumed foreign inflows into Indian markets and investor confidence in the stability following the Bharatiya Janata Party’s (BJP) return to power.
The 30-share BSE
After finding support at the 200 SMA on the weekly timeframe, the stock has been in recovery mode. The strength in price is backed by rising volume.
The price has moved up after a doji pattern formation on the weekly chart, suggesting a rise in optimism. Additionally, the stock has been sustaining above the critical moving average. On the lower end, support is placed at 127, and if it holds, the stock might move towards 150 in the short term.
The stock has been sustaining above the critical moving average on the weekly timeframe following a significant breakout. On the daily chart, the stock has been forming a flag pattern; a breakout from this pattern might set the stock up for a decent rally in the medium term.
The RSI is in a bullish crossover on the weekly timeframe. On the lower end, support is placed at 87, while on the higher end, it might move towards 107/115.
The stock has shown strength even after a substantial rally in the last few months. It has been sustaining above the critical moving average on both the daily and weekly charts. On the lower end, support is placed at 5090, while resistance is visible at 5800.
On the weekly chart, the stock has given a rectangle pattern breakout, suggesting a significant positive shift in sentiment. Investors increasingly believe that the stock will perform well in the medium term.
On the daily timeframe, the stock has also given a consolidation breakout, which was supported by a surge in volume. The RSI is in a bullish crossover on the weekly timeframe. Over the medium term, the stock might move smartly towards 570 and beyond. On the lower end, support is placed at 430.
The stock has given a falling trend line breakout, suggesting a rise in optimism. The trend looks positive as the index has sustained above the 50 EMA on the daily timeframe. Additionally, a hidden positive divergence is visible on the daily RSI, indicating strong momentum in the current bullish phase. On the higher end, the stock might move towards 340. On the lower end, support is placed at 297.
The stock has given a consolidation breakout on the daily timeframe, with increasing volume. Besides, the stock has been trading within a rising channel. The RSI indicates a bullish crossover, suggesting upward momentum. Therefore, one can consider buying the stock with a stop loss at 288, targeting 315 and 325.
The stock has moved above previous consolidation, suggesting improved interest surrounding the stock. Besides, the stock has sustained above critical moving average. The RSI is in bullish crossover and rising.
Additionally, the stock price has been rising with a rising volume back up. Therefore, in the short term, the stock might move towards a higher level with a potential to reach upto 560. On the lower end, support is placed at 518.
(About the Author: Rupak De is a Senior Technical Analyst at LKP Securities
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