Indian stock market: Nifty has consistently remained below its 21-day Exponential Moving Average (EMA), a sign that underscores the prevalence of a bearish trend. On the lower end, Support is placed at 19,250. A fall below 19,250, may trigger a correction towards 19,000 and lower. On the higher end, resistance was placed at 19,500.

The Bank Nifty index is persistently encountering resistance at the 44,000 level, where the call side holds the highest open interest. The lower end of the support is noticeable around 43,600, which aligns with the presence of the 100-day moving average (DMA). If this support level is breached, it could trigger additional selling pressure in the market. A break on either side will lead to trending moves.

Meanwhile, the focus is on individual stocks. Here are two stocks that look attractive based on technical parameters:

Bharat Forge | Recommendation: Buy | Target: ₹1,000 | Stop Loss: ₹940

Bharat Forge share price is on the brink of breaking out from a consolidation phase. The momentum indicator, RSI, has shown a positive crossover, suggesting increasing buying interest. A solid support base is established around ₹940, which could act as a cushion for any potential downside moves. The stock’s upside potential targets are at ₹1,000 and ₹1,015 levels.

EIH Associated Hotels |  Recommendation: Buy | Target: ₹250 | Stop Loss: ₹ ₹209 

EIH Hotels share price has shown reversal on daily charts, following a downwards consolidation breakout. Additionally, a positive crossover is apparent on the weekly Relative Strength Index (RSI), with a reading exceeding 50. Over the short term, the stock might rally up to ₹250 in the near term. The stock’s price is trading above all the important moving averages. On the downside, a support level can be identified at ₹209.

The author, Kunal Shah is Senior Technical & Derivative analyst at LKP Securities

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

Updated: 20 Aug 2023, 01:11 PM IST