The Nifty index closed at 22,302 after a third consecutive session of decline, losing 0.62% yet managing to stay above its 50-day Exponential Moving Average (EMA) support at 22,240. This downward movement resulted in a correction of more than 550 points from its all-time high of 22,794 within just three trading sessions. There is a concern that if the index falls below the 22,240 mark, it could potentially decline further to 22,166, representing a significant retracement of the recent rally witnessed from 21,777 to 22,794.
Looking ahead, a resistance barrier is anticipated within the 22,500-22,600 range, and signs indicate that the Nifty Smallcap and Microcap indices are displaying relative weakness on the charts, urging traders to exercise caution within those segments. Alongside the market analysis, HDFC Securities analyst Vinay Rajani recommends buying shares of Oil India at 634, setting a target price of Rs. 725 with a stop-loss at Rs. 590. The stock has shown a consolidating pattern over the last six sessions and exhibits a bullish trend with higher tops and bottoms, trading above key moving averages across various time frames. Technical indicators and oscillators are signaling strength in the current uptrend.
On the 26th of April, Oil India experienced a breakout from a downward-sloping trend line on the daily chart, accompanied by increased volumes. Following the breakout, the stock underwent a correction but found support at a gap level on the daily chart, subsequently resuming its primary uptrend. With positive indicators and oscillators aligning with a bullish sentiment on the daily chart, the stock portrays a favorable outlook for potential growth. It is important to note that the views expressed by Vinay Rajani are personal, and he does not hold any positions in the mentioned stocks.