Nifty rose for the fifth consecutive session on March 14 and settled 240.85 points higher at 16,871. The index has surged more than 1,200 points in last 5 trading sessions. It managed to reclaim levels above its 20 and 200 days exponential moving average (EMA), which are currently placed at 16,725 and 16,693 respectively.
Last week, Nifty formed bullish "Engulfing" pattern on the weekly charts and on the first session of the current week, the bullish implication of that pattern got activated, as Nifty surpassed last week's high. This confirmed the bullish trend reversal on the short term charts of Nifty.
Nifty has also surpassed the key resistance of 16,800. For last two trading sessions, Nifty has been finding support on its 5-day EMA, which is currently placed at 16,597.
Short term trend of the Nifty and Bank Nifty seems to have reversed on the upside and markets are expected to extend the current pullback. On the upside, Nifty has got resistance in the zone of 17,050-17,100, where 50-day EMA and Daily super indicator is placed.
Relative strength index (RSI) oscillator showed positive divergence and now has reached above the benchmark level of 50 on the Nifty daily charts. This indicates that there is good chance that Nifty would continue to rise further from current levels.
Here are three buy calls for next 2-3 weeks:
Wipro: Buy | LTP: Rs 598 | Stop-Loss: Rs 570 | Target: Rs 645 | Return: 8 percent
The stock rose 2 percent with higher volumes and managed to surpass crucial resistance of 50 days EMA. Stock has also surpassed the previous top resistance placed at Rs 590 on the daily charts.
IT index has been in to bullish momentum and the same is expected to continue for the coming days.
Indicators and oscillators like directional movement index (DMI), RSI and moving average convergence divergence (MACD) have given fresh buy signal on the short term charts.
Inox Leisure: Buy | LTP: Rs 435.25 | Stop-Loss: Rs 395 | Target: Rs 530 | Return: 22 percent
Downward sloping trend line breakout was seen on daily chart. Stock has surpassed the previous top resistance of Rs 437.70 on daily chart. Price breakout is accompanied by jump in volumes.
Stock has been finding support on its 50 days EMA. Indicators like DMI and MACD have been showing strength in the current up move. Stock is placed above all important moving average parameters, indicating uptrend on all time frames.
Amber Enterprises: Buy | LTP: Rs 3,692 | Stop-Loss: Rs 3,400 | Target: Rs 4,150 | Return: 12 percent
The stock has been forming higher tops and higher bottoms on the daily chart. Stock is on the verge of registering the new all-time high above Rs 3,925.
The stock is placed above all important moving averages, which indicates bullish trend on all time frames. Last week, Nifty consumer durable index formed bullish "Piercing Line" candlestick pattern on the weekly charts. Indicators and oscillators have turned bullish on the daily charts.
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