The Nifty is consolidating with a positive bias in the range of 19,300 to 19,500. Sustaining above the 19,500 level would indicate further strength towards 19,770. On the downside, slipping below 19,300 may lead to profit booking towards 19,191 and 18,888. Overall, the outlook remains bullish, providing a buying opportunity during any dips.
Bank Nifty has faced resistance at 45,500 and is currently underperforming. However, the immediate and critical support level is at 44,500, where fresh buying momentum can be expected. If Bank Nifty surpasses the hurdle at 45,200, a short covering move may follow.
As we prepare for the upcoming earnings season, scheduled corporate reports will provide key insights that will heavily influence market trends and investor sentiment. Alongside earnings data, it is crucial to closely monitor and analyze US inflation numbers, as well as our own consumer price index (CPI) figures, which serve as critical indicators for assessing the overall economic climate. These factors combined will guide our decision-making process and help us navigate the market effectively.
Here are three buy calls for next 2-3 weeks:
BHEL: Buy | LTP: Rs 94 | Stop-Loss: Rs 87| Target: Rs 108 | Return: 15 percent
The counter has experienced a breakout of a triangle pattern formation accompanied by high trading volume. It has retested its previous breakout Rs 90 level and started a new leg of the rally towards Rs 100, also forming higher highs and higher lows on a longer timeframe.
Additionally, the counter's overall structure is appealing, as it is currently trading above all its important moving averages.
The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.
On the upside, Rs 96–98 is an important psychological level; above this, we can expect a move towards Rs 105+. On the downside, a cluster of moving averages at around Rs 87 is a strong demand zone during any correction.
JB Chemicals and Pharmaceuticals: Buy | LTP: Rs 2,450 | Stop-Loss: Rs 2,200 | Target: Rs 2,842 | Return: 16 percent
The counter is in a long-term uptrend where it is resuming its classical uptrend, followed by a meaningful correction. It created a strong base at the Rs 1,800 level, and now it is breaking out of the key hurdle of the Rs 2,200 level, which may lead to fresh bullish momentum towards the Rs 2,800 level.
On the downside, Rs 2,200 will act as strong support. It is trading above its all-important moving averages with a positive bias in momentum indicators.
Rainbow Childrens Medicare: Buy | LTP: Rs 1,070 | Stop-Loss: Rs 980 | Target: Rs 1,244 | Return: 16 percent
The counter has seen strong traction from the past couple of trading sessions that have soared it above all its major exponential moving averages on the daily chart. The stock has witnessed a Cup and Handle’ pattern breakout on the daily chart, which construes a bullish signal on the counter.
The stock has the potential to cross its psychological level of Rs 1,100 in the near term. If it breaks Rs 1,100, then we can expect Rs 1,200 to be the next susceptible level. On the Downside, Rs 980 is the major support level.
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