Bitcoin's rally is making some investors nervous about the stock market

The domestic markets witnessed a much-anticipated pullback this week ended November 22, recovering sharply after being under pressure from geopolitical tensions and Adani Group concerns. The Nifty index, which nearly retested the 23,200 mark, surged back to 23,900 during the week’s final sessions, marking a notable 2.4 percent single-day gain. Technical indicators had signaled this rebound, with indices like the Nifty 50 and Nifty 500 consolidating near their 200-day exponential moving averages (DEMA) and showing RSI (Relative Strength Index) divergences. The Nifty 50’s breakout from a falling trendline indicates a potential retest of 24,500, though upcoming Maharashtra election results and geopolitical uncertainties could affect sentiment. Meanwhile, the Nifty Bank index held above its rising trendline and 200-day DEMA, fueling a 2 percent weekly recovery. With key support at 50,000–49,800 intact, it could rally toward 52,000, with 52,500 as a critical resistance level for further gains. Traders may view dips as short-term buying opportunities.

Buy Nifty Futures between 23,800-23,750, with a stop-loss of 23,575, targeting 24,200, while buy Bank Nifty between 51,000-50,900, with a stop-loss of 50,550, targeting 51,700.

Here are three stock ideas for short term:

Bajaj Finance | CMP: Rs 6,684

Over the past 8-9 months, Bajaj Finance has been trading within a broad range of Rs 6,400-7,800, consolidating without a decisive trend. Recently, the stock found strong support near Rs 6,400 level and has shown a reversal from this support zone accompanied by decent trading volumes, indicating renewed buying interest. In the previous trading session, it broke above the highs of the last four days, supported by a bullish divergence on the daily chart, which further strengthens the case for upward momentum. Considering these technical signals, a buying opportunity is identified in the Rs 6,650-6,700 range.

Strategy: Buy

Target: Rs 7,350

Stop-Loss: Rs 6,300

Reliance Industries | CMP: Rs 1,265

Reliance Industries has been following a textbook Elliott Wave 5-wave structure on the daily chart since March 2023. This impulsive rally came to a decisive conclusion in July 2024, marking the end of the fifth wave and initiating a corrective ABC phase. Such corrections are typical after the completion of a 5-wave cycle and often retrace to significant Fibonacci levels. Currently, the ongoing correction appears to be approaching a critical support zone in Rs 1,220-1,240 range, aligning with the 61.8 percent Fibonacci retracement level of the entire 5-wave structure. This level holds importance as it typically serves as a strong support during corrective phases, indicating the potential for base formation. Moreover, these levels coincide with the completion of a bullish Crab harmonic pattern, further strengthening the case for a reversal.

Given this confluence of technical indicators, traders can consider initiating long positions in Rs 1,230-1,270 range, placing a protective stop-loss below Rs 1,185 to manage risk. The anticipated upside target for this trade is around Rs 1,374, offering a favourable risk-to-reward ratio as the stock is poised to resume its upward trajectory following the correction.

Strategy: Buy

Target: Rs 1,374

Stop-Loss: Rs 1,185

Havells India | CMP: Rs 1,665.8

Since November 2023, Havells India has been adhering to a classic Elliott Wave 5-wave structure on the daily chart. This impulsive rally concluded decisively in September 2024, marking the end of the fifth wave and transitioning into a corrective ABC phase. Such corrections are typical following a 5-wave cycle and often retrace to key Fibonacci levels. Currently, the correction is nearing a critical support zone between Rs 1,630-1,650, aligning with the 61.8-50 percent Fibonacci retracement levels of the entire 5-wave rally. This zone holds significance as it often acts as a strong support during corrections, suggesting potential base formation. Additionally, the levels coincide with the completion of a double-bottom pattern accompanied by bullish divergence on the daily chart, further strengthening the likelihood of a reversal.

Given this confluence of technical signals, traders may consider entering long positions within Rs 1,645-1,675 range. A protective stop-loss below Rs 1,560 is recommended to manage risk, while the anticipated upside target is around Rs 1,825. This setup offers an attractive risk-to-reward ratio, with the stock positioned to resume its upward trajectory post-correction.

Strategy: Buy

Target: Rs 1,825

Stop-Loss: Rs 1,560

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

The domestic markets witnessed a much-anticipated pullback this week ended November 22, recovering sharply after being under pressure from geopolitical tensions and Adani Group concerns. The Nifty index, which nearly retested the 23,200 mark, surged back to 23,900 during the week’s final sessions, marking a notable 2.4 percent single-day gain. Technical indicators had signaled this rebound, with indices like the Nifty 50 and Nifty 500 consolidating near their 200-day exponential moving averages (DEMA) and showing RSI (Relative Strength Index) divergences. The Nifty 50’s breakout from a falling trendline indicates a potential retest of 24,500, though upcoming Maharashtra election results and geopolitical uncertainties could affect sentiment. Meanwhile, the Nifty Bank index held above its rising trendline and 200-day DEMA, fueling a 2 percent weekly recovery. With key support at 50,000–49,800 intact, it could rally toward 52,000, with 52,500 as a critical resistance level for further gains. Traders may view dips as short-term buying opportunities.

Buy Nifty Futures between 23,800-23,750, with a stop-loss of 23,575, targeting 24,200, while buy Bank Nifty between 51,000-50,900, with a stop-loss of 50,550, targeting 51,700.

Here are three stock ideas for short term:

Bajaj Finance | CMP: Rs 6,684

Over the past 8-9 months, Bajaj Finance has been trading within a broad range of Rs 6,400-7,800, consolidating without a decisive trend. Recently, the stock found strong support near Rs 6,400 level and has shown a reversal from this support zone accompanied by decent trading volumes, indicating renewed buying interest. In the previous trading session, it broke above the highs of the last four days, supported by a bullish divergence on the daily chart, which further strengthens the case for upward momentum. Considering these technical signals, a buying opportunity is identified in the Rs 6,650-6,700 range.

Strategy: Buy

Target: Rs 7,350

Stop-Loss: Rs 6,300

Reliance Industries | CMP: Rs 1,265

Reliance Industries has been following a textbook Elliott Wave 5-wave structure on the daily chart since March 2023. This impulsive rally came to a decisive conclusion in July 2024, marking the end of the fifth wave and initiating a corrective ABC phase. Such corrections are typical after the completion of a 5-wave cycle and often retrace to significant Fibonacci levels. Currently, the ongoing correction appears to be approaching a critical support zone in Rs 1,220-1,240 range, aligning with the 61.8 percent Fibonacci retracement level of the entire 5-wave structure. This level holds importance as it typically serves as a strong support during corrective phases, indicating the potential for base formation. Moreover, these levels coincide with the completion of a bullish Crab harmonic pattern, further strengthening the case for a reversal.

Given this confluence of technical indicators, traders can consider initiating long positions in Rs 1,230-1,270 range, placing a protective stop-loss below Rs 1,185 to manage risk. The anticipated upside target for this trade is around Rs 1,374, offering a favourable risk-to-reward ratio as the stock is poised to resume its upward trajectory following the correction.

Strategy: Buy

Target: Rs 1,374

Stop-Loss: Rs 1,185

Havells India | CMP: Rs 1,665.8

Since November 2023, Havells India has been adhering to a classic Elliott Wave 5-wave structure on the daily chart. This impulsive rally concluded decisively in September 2024, marking the end of the fifth wave and transitioning into a corrective ABC phase. Such corrections are typical following a 5-wave cycle and often retrace to key Fibonacci levels. Currently, the correction is nearing a critical support zone between Rs 1,630-1,650, aligning with the 61.8-50 percent Fibonacci retracement levels of the entire 5-wave rally. This zone holds significance as it often acts as a strong support during corrections, suggesting potential base formation. Additionally, the levels coincide with the completion of a double-bottom pattern accompanied by bullish divergence on the daily chart, further strengthening the likelihood of a reversal.

Given this confluence of technical signals, traders may consider entering long positions within Rs 1,645-1,675 range. A protective stop-loss below Rs 1,560 is recommended to manage risk, while the anticipated upside target is around Rs 1,825. This setup offers an attractive risk-to-reward ratio, with the stock positioned to resume its upward trajectory post-correction.

Strategy: Buy

Target: Rs 1,825

Stop-Loss: Rs 1,560

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.