The Nifty is respecting the 17,400 level, while the 200-DMA (daily moving average) around 17,300 is a critical support level. On the upside, 17,950–18,000 will be a critical resistance zone. If the Nifty manages to take out this zone, then we can expect a short-covering rally towards 18,200 and 18,500 levels.
On a closing basis, Bank Nifty is holding a psychological support level of 40,000, while the 200-DMA is located around the 39,000 level. On the upside, the 100-DMA of around 41,500 is a critical hurdle; above this, we can expect a short-covering move towards the 42,000–42,500 zone.
FIIs' short exposure in index futures has reached a multi-month high that may help in a short covering rally if the market likes the budget.
Here are three buy calls for next 2-3 weeks:
KPIT Technologies: Buy | LTP: Rs 763 | Stop-Loss: Rs 695 | Target: Rs 874 | Return: 15 percent
On the daily chart, the counter has witnessed a breakout of a long consolidation formation with strong volume, while on the weekly chart, it has broken a triangle formation pattern. The counter has a classic structure because it is trading above all of its significant moving averages.
While the moving average convergence and divergence (MACD) indicator is experiencing an upward centerline crossover, the relative strength index (RSI), a momentum indicator, is positively poised.
In the near-short term, above Rs 800, the stock can move above Rs 850, while on the lower side, Rs 695 will work as a big support during any pullback. On the higher side, Rs 800 is acting as an important psychological threshold.
Ratnamani Metals and Tubes: Buy | LTP: Rs 2,220 | Stop-Loss: Rs 2,057 | Target: Rs 2,574 | Return: 16 percent
On the longer horizon, the counter is exhibiting traditional bullish momentum and forming higher highs - higher lows formations. On the shorter horizon, it has broken from a longer consolidation formation with large volume, and on the weekly chart, it broke from a triangular formation pattern.
The counter has a lucrative structure as it is trading above all of its significant moving averages.
The momentum indicator RSI (relative strength index) is positively poised, whereas MACD (moving average convergence and divergence) is witnessing a centerline crossover on the upside.
On the higher side, Rs 2,300 is acting as an important psychological level; above this, we can expect the level of Rs 2,500+ in the near-short term, while on the lower side, Rs 2,057 will act as a major support during any correction.
Mahindra CIE Automotive: Buy | LTP: Rs 395 | Stop-Loss: Rs 359 | Target: Rs 454 | Return: 15 percent
The counter has a very profitable structure and has experienced a significant multi-month breakout over Rs 390. It has now resumed its ascent toward Rs 420 after retesting its earlier breakout mark of Rs 345.
On the upside, the levels of Rs 420 operate as vulnerable levels; above these, we can anticipate a protracted move towards Rs 450+ in the shorter to longer term. On the downside, Rs 359 acts as a crucial support during any pullback.
The momentum indicator MACD (moving average convergence divergence) is sustaining the current strength, and the RSI (relative strength index) is also poised favourably.
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