The Nifty ended lower on all three days of the current truncated week giving the close at 17,475. On the weekly charts, the index breached below the previous week's Doji candle low but still managed to hold above the 20-week SMA (simple moving average).
On the daily charts, the Nifty has closed just at the 20-week SMA (17,471) below which the index has support around 17,400, the index can find some support around this level.
On the higher side, the resistance lies at 17,600 and 17,790 levels.
The RSI (relative strength index) on daily and weekly scales is hovering around the 50 mark and giving neutral signals.
The mid-term trend for the index continues to be positive till the index sustains above the 17,000 mark. However, in the short term, we expect the index to trade in the range of 17,300-18,000 levels.
Here are three buy calls for next 2-3 weeks:
IIFL Finance: Buy | LTP: Rs 366.95 | Stop-Loss: Rs 330 | Target: Rs 440 | Return: 20 percent
IIFL Finance has been moving in a strong uptrend since March 2020. Currently the stock is breaking out of a 8-month long consolidation with strong volume buildup.
In the current week, the stock formed a Bullish Marubozu candle with the breakout which indicates bullish sentiment in the counter.
The RSI (relative strength index) indicator is also breaking out and confirming the bullish view.
Going ahead, we expect the stock to move higher towards Rs 410 followed by Rs 440 levels. We recommend to follow a strict stop-loss of Rs 330 on daily closing basis.
Godfrey Phillips: Buy | LTP: Rs 1,292.25 | Stop-Loss: Rs 1,185 | Target: Rs 1,550 | Return: 20 percent
On long term charts, Godfrey Phillips has taken support at the rising trendline and bounced to give a close at 4-month high.
On the daily charts, the stock has broken out of an Inverse Head & Shoulder pattern with strong volumes indicating strength in the breakout.
The stock has formed a long bullish Marubozu candle on the weekly charts and has broken and sustained above the 20-week SMA (Rs 1,118).
The RSI indicator on daily has also given a breakout and confirmed the bullish view.
Price action and technical parameters indicate prices moving higher towards Rs 1,425 followed by Rs 1,550 levels. We recommend a stop-loss of Rs 1,185 for this trade setup.
Thermax: Buy | LTP: Rs 2,229.85 | Stop-Loss: Rs 2,050 | Target: Rs 2,550 | Return: 14 percent
Thermax has been moving in a rational uptrend with higher highs and higher lows formation. Recently the stock took support at its 20 Day SMA (Rs 2,009) and broke out of a 3 months consolidation backed with good volumes.
The RSI indicator also crossed above the 60 mark and is confirming the breakout. We expect the stock to outperform and move higher towards Rs 2,400 followed by Rs 2,550 levels.
We recommend a stop-loss of Rs 2,050 for this trade.
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.
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