Malay Thakkar, Technical Research Associate, GEPL Capital
On the mid-term charts, after nearly a 15 percent correction, the Nifty has bounced sharply from the 23.6 percent Fibonacci retracement level (7,511-18,604 rally).
After a gap-up opening on March 17, the Nifty managed to close above the 200-day simple moving average (16,997) and filled the gap 17,027-16,705 created on February 24.
The relative strength index (RSI) indicator on weekly is moving higher after forming a bullish hinge at the 40 mark.
The 17,000-mark will be a major downside support for the index. Till the Nifty holds above this level, we can expect upside movement towards 17,790 (swing high) and then towards 18,350 (January 2022 high).
Here are three buy calls for the next two-three weeks:
Godrej Properties: Buy | LTP: Rs 1,596.40 | Stop-Loss: Rs 1,460 | Target: Rs 1,900 | Return: 19 percent
On the long-term charts, Godrej Properties is moving with higher highs and higher lows formation.
On the weekly charts, we can see that after the sharp correction from the Rs 2,600, the price has taken support at the 61.8 percent Fibonacci retracement (Rs 575-1,598) and formed a bullish candle with a long lower shadow indicating buying interest at lower levels.
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The RSI indicator plotted on the weekly scale is showing a sign of a positive reversal, suggesting bullish momentum can continue.
The price action and technical parameters suggest that prices can move higher towards Rs 1,780 followed by Rs 1,900.
We recommend a strict stop-loss of Rs 1,460 on a daily closing basis.
Titan Company: Buy | LTP: Rs 2,703 | Stop-Loss: Rs 2,560 | Target: Rs 3,005 | Return: 11 percent
On long-term charts, Titan is moving in a strong uptrend and maintaining the higher highs and lows formation. Recently, the stock has broken out of a five-month long consolidation and now trading at its life high.
The RSI indicator witnessed a range shift and is sustaining above the 50 mark since July 2020.
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We expect the stock to move higher towards Rs 2,855 followed by Rs 3,005 levels. One must follow a stop-loss of Rs 2,560 for this trade.
PI Industries: Buy | LTP: Rs 2,815 | Stop-Loss: Rs 2,620 | Target: Rs 3,320 | Return: 18 percent
On long-term charts, PI Industries is moving in a rational uptrend. In the recent correction, the stock formed a double bottom at the Rs 2,350 and gave a breakout with rising volumes.
In the recent week, the stock surpassed the 20-week SMA (Rs 2,736) and is now trading at an eight-week high. The RSI on the weekly timeframe is indicating a positive reversal, suggesting that the bullish momentum will continue.
We expect prices to move towards Rs 3,110 followed by Rs 3,320 levels. A stop-loss of Rs 2,620 should be followed for this trade.
Disclaimer: The views and investment tips expressed by 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.
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