By Vidnyan Sawant, AVP - Technical Research at GEPL Capital
On the monthly charts, the Nifty is sustaining near life high levels, indicating strong positive undertone of the index. On the weekly charts, the index has been forming Rising Wedge price pattern since March 2023. On the daily time frame, the Index can be spotted while forming Higher Highs and Higher Lows on swing basis which confirms the presence of uptrend.
We saw that the Nifty has been consistently respecting the support level of 13-day EMA (exponential moving average) since April 2023 indicating primary bullish trend continues.
The momentum indicator RSI (relative strength index) has sustained above 60 level on all the time frames like daily, weekly and monthly indicating strong positive momentum of the index.
The index has a strong support at 18,460, followed by 18,200. While on the higher side, 18.887 (life high), followed by 19,055 (key resistance) are crucial levels to watch out for.
The overall trend looks positive for the Nifty index. We expect the index to move higher till 18,887 followed by 19,055 levels in the coming future.
Here are three buy calls for next 2-3 weeks:
Apollo Hospitals Enterprises: Buy | LTP: Rs 5,218.75 | Stop-Loss: Rs 4,900 | Target: Rs 5,900 | Return: 13 percent
The stock has consistently remained above the support level of Rs 4,900, which indicates a significant shift in price polarity. Notably, the stock recently experienced a breakout of the Rounding Bottom pattern, suggesting a potential reversal to the upside.
Furthermore, on the daily timeframe, there was a golden cross observed in early May 2023, reinforcing the presence of an uptrend. Additionally, the RSI on the weekly timeframe exhibited a breakout, indicating the presence of positive momentum.
Looking ahead, we anticipate the prices to ascend towards Rs 5,900 level, with a strict stop-loss at Rs 4,900, based on the closing prices.
Angel One: Buy | LTP: Rs 1,562.95 | Stop-Loss: Rs 1,452 | Target: Rs 1,775 | Return: 14 percent
The stock has undergone a favourable correction since July 2021, characterized by a notable absence of lower highs and lower lows. Moreover, recent price action has demonstrated a breakout of the Descending Triangle pattern, implying a potential reversal towards an upward trajectory.
Notably, on the daily timeframe, the stock is currently trading above its key moving averages, including the 50, 100, and 200-day EMA, indicating the initiation of an upward trend.
Additionally, the RSI on the weekly timeframe has experienced a breakout, affirming the presence of positive momentum in the stock.
Based on our analysis, we anticipate further price appreciation in the near future, with a potential target level of Rs 1,775. It is advisable to implement a strict stop-loss at Rs 1,452, adhering to a closing basis.
One 97 Communications (Paytm): Buy | LTP: Rs 892.90 | Stop-Loss: Rs 810 | Target: Rs 1,055 | Return: 18 percent
Paytm has made a 52-week high and sustained around that level indicating strong positive undertone of the stock. On the weekly charts, the stock has given Cup & Handle pattern breakout which confirms the bullish structure of the stock.
On the daily timeframe, the stock has maintained Higher Top Higher Bottom formation and also on every up move we witnessed rising volumes which shows the strong participation of the bulls.
The momentum indicator RSI on the Weekly timeframe is rising and sustaining above 65 levels reflecting presence of positive momentum.
We expect the prices to move higher till Rs 1,055 level where the stop-loss must be Rs 810 strictly on the closing basis.
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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