The Nifty is trying to bottom out near the 16,800 mark with a bullish hammer candlestick formation, where 17,245 is an immediate hurdle; above this, we can expect a short-covering rally towards 17,320 and 17,440 levels. If it slips below 16,800 mark, then we can expect a fresh round of weakness.
Bank Nifty is outperforming and has managed to regain its 200-DMA (days moving average); however, the 20-DMA of 40,170 is an immediate hurdle; above this, we can expect a short-covering move towards 41,000 level. On the downside, 39,400–39,000 is an immediate and critical support zone.
The market is extremely oversold as short exposure of FIIs in index futures is at a record level; therefore, we can expect a powerful short-covering rally if the global market stabilises. The outcome of the US FOMC meeting is a key event that will dictate the direction of the market from here.
Here are three buy calls for next 2-3 weeks:
Anant Raj: Buy | LTP: Rs 122.40 | Stop-Loss: Rs 107 | Target: Rs 144 | Return: 17 percent
It has witnessed a breakout of the symmetrical triangle formation on the daily chart. The structure of the counter is very lucrative; it has witnessed a strong multi-month breakout above Rs 86. It has retested its previous breakout level of Rs 86, and now it starts a new leg of rallying towards Rs 140.
On the higher side, Rs 126 acts as susceptible levels; above this, we can expect a long move towards Rs 140+ in the shorter to longer timeframe, while on the lower side, Rs 107 serves as an important support during any correction.
MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
Hariom Pipe Industries: Buy | LTP: Rs 487.30 | Stop-Loss: Rs 450 | Target: Rs 554 | Return: 14 percent
The counter is in a classical uptrend and forming higher highs and higher lows on the daily chart. The structure of the counter is lucrative, as it is trading above each of its significant moving averages. It also witnessed breakout of a channel formation on the longer timeframe.
MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
On the upside, if Rs 500 is an immediate psychological hurdle, we can expect a move towards the Rs 550+ levels. On the downside, Rs 450 will act as a strong demand zone.
Nucleus Software: Buy | LTP: Rs 627.85| Stop-Loss: Rs 567 | Target: Rs 724 | Return: 15 percent
The counter is in bullish momentum and forming a bullish Flag formation to continue this momentum for further upside, where the previous swing high around Rs 640 is an immediate target level.
On the downside, the previous breakout level of Rs 567 is an immediate support level, while Rs 530 is also a strong demand zone. Momentum indicators are positively poised to support the current strength of the trend.
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