Fortis and Dr. Reddy Stocks Surge: A Comprehensive Analysis for Investors (FTS, RDY)
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- The Indian stock market is showing signs of near-term bearishness with the Nifty index forming a double top pattern on the daily chart.
- The BankNifty index maintains its uptrend despite selling pressure from higher levels.
- Stocks such as Dr. Reddy, Fortis, and TAJ GVK Hotels and Resorts exhibit promising setups and are recommended for buying.
Explore the latest developments in the Indian stock market, including the Nifty and BankNifty indices, and discover promising stocks to buy for potential gains.
Nifty Index: A Bearish Outlook
The Nifty index is displaying signs of near-term bearishness as it forms a double top pattern on the daily chart, coupled with a bearish engulfing candle. This suggests a sell-on-rise approach in the market. Confirmation of the double top pattern would require follow-up selling in the upcoming week. Immediate resistance is noted at the 22,600-22,700 zone, where aggressive call writing has been observed in the options market. On the downside, the index has immediate support at 22,300, and a breach below this level could accelerate the downside momentum.
BankNifty Index: Maintaining Uptrend
Despite facing selling pressure from higher levels, the BankNifty index has managed to maintain its uptrend, closing near the immediate support of 49,000. Immediate resistance is at 49,200, and a break above could trigger short-covering moves towards 49,500 levels. Conversely, immediate support lies at 48,800-48,700, and a breach might lead to further downside towards the 48,400 mark, where the 20DMA is situated.
Stocks to Buy: Dr. Reddy, Fortis, and TAJ GVK Hotels and Resorts
Dr. Reddy’s stock exhibits a promising setup: a breakout from a descending trendline on the daily chart, accompanied by a bullish candlestick. It maintains a position above its 21-day moving average, indicating short-term strength. The Relative Strength Index (RSI) has also shown a bullish crossover, residing at 60. The stock can be bought at ₹6330 with a target price of ₹6600/6900 and a stop loss of ₹6100.